31.2 C
Lagos
Friday, March 29, 2024

Access Bank’s Restricted Deposits with CBN Surges to N1.03 trillion

Must read

spot_img
- Advertisement -

Access Bank’s restricted deposits with the Central Bank of Nigeria (CBN) has jumped to N1.03 trillion, according to data from its latest financial results.

To put that in context, that is at par with the N1.1 trillion in total customer deposits of tier-2 lender Union Bank.

Restricted deposits with central banks comprise the cash reserve requirements (CRR) of the Central Bank of Nigeria and other central banks of jurisdictions that the Group operates in as well as the special intervention fund with the Central Bank of Nigeria of N89.58Bn introduced in January 2016.

These balances which have been growing fast, are not available for day to day operations of the Group.

The CRR for Nigerian Banks is currently at 27.5 percent and 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.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article