CBN Hits Banks with N215.8bn Debit for CRR

The Central Bank of Nigeria (CBN) today hit banks with a total debit of N215.8 billion for mandatory Cash Reserve Ratio (CRR) levels, banking sources told MoneyCentral.

The CBN CRR debit ranged from N59.5 billion for Guaranty Trust bank (GTB), which was the hardest hit to N1 billion for Unity Bank.

Zenith Bank was debited the sum of N30 billion, FBN Holdings N20 billion, Access Bank N18 billion and UBA N10 billion.

The CRR for Nigerian Banks is currently at 27.5 percent and is one of the highest in the world. The CRR is a mandatory percentage of customers deposits that banks must keep with the central bank.

The CBN has been using the reserve requirement regulation as a blunt tool to curb the money supply and keep inflation in check.

It also debits the accounts when lenders fail to extend 65 percent of their deposits as loans, a measure that was introduced to stimulate credit.