Nigerian banks suffered a total of N917.5 billion in new CRR debits from the Central Bank of Nigeria.
The cash reserve requirement is the minimum amount banks are expected to leave retained with the Central Bank of Nigeria from customer deposits.
In January, the CRR was increased by 5% to 27.5% by the CBN Monetary Policy Committee (MPC) which explained that the decision was intended to address monetary-induced inflation whilst retaining the benefits from the CBN’s Loan to Deposit policy.
Zenith Bank topped the list with N285 billion followed by UBA with N160 billion.
The rest, Access, FBN, and GTB were debited N140 billion, N95 billion, and GTB N55 billion respectively.
Nigeria’s central bank has since 2019 debited banks a chunk of their deposits as part of a mutually inclusive cash reserve requirement (CRR) and Loan to Deposit Ratio policy that is targeted at coercing banks to lend more to the private sector.
CBN now holds a total of N6.57 trillion in CRR debits from the nation’s top 5 banks 43% higher than the N4.58 trillion held in March and more than double the N3.5 trillion CRR debits as of December 2019.
CRR debits in the third quarter of 2020 will be revealed when banks release their results in the coming days and weeks.