RateCaptain
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Rate Captain
No Result
View All Result
Home Currencies

CBN Debits Local Commercial Banks N8.04 Trillion in Cash Reserve Requirement

Rate Captain by Rate Captain
December 24, 2021
in Currencies, Economics, Money Market
Reading Time: 2 mins read
A A
0

Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. REUTERS/Afolabi Sotunde/File Photo

Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

AlsoRead

Ethereum breaks below $1,800 as selling pressure accelerates

CBN’s N143 billion treasury bills auction records 47% oversubscription

Russia reduces interest rate to 11% amid surge of the ruble

 A sum of N10 trillion in Cash Reserve Requirement (CRR) has been debited by the Central Bank of Nigeria to Deposit Money Banks for the first nine months of the year 2021.

 Through the year 2019 till date, The Central Bank’s Monetary Policy Committee has preserved CRR rate at 22.5%. The Cash Reserve Requirement (CRR) is the total amount the apex bank debits from banks to regulate monetary policy scheme.

 Data obtained from the CBN’s the money and credit statistics explained the CRR debit from the biggest privately owned commercial banks in Nigeria.

 The banks include Access Bank, GT Bank, FBN Holdings, FCMB, UBA, and Sterling Bank. The others are Union Bank, Stanbic IBTC, Fidelity Bank, and Zenith Bank Plc.

 Commercial banks in Nigeria reported an estimate of N8.04 trillion in Cash Reserve Requirement from January to September of 2021, Which is 1.60 % greater than the previous years value of N7,9 trillion for 2020

This is based on data pooled from the financial statements of the major banks listed on the Stock Exchange.

The banks include Access Bank, GT Bank, FBN Holdings, FCMB, UBA, and Sterling Bank. The others are Union Bank, Stanbic IBTC, Fidelity Bank, and Zenith Bank Plc.

Nigeria’s Central Bank by regulation forces banks to retain up to 30 per cent of their deposits in cash reserve requirement; meaning that the deposits are not accessed by the banks for loans and advances.

During the year,   an estimated N8 trillion was held by CBN as CRR debits from the 10 banks under review out of a total deposit of N34.3 trillion. This represents an average of 23.4 per cent compared to 25.7 per cent a year ago and much lower than the 27.5 per cent stipulated by the apex bank as CRR.

According to Nairametrics analysts, about N10 trillion is held by the CBN as CRR for all banks as contained in the money and credit statistics of the CBN. It was N11.1 trillion in the same period last year.

Despite the average being lower in the first nine months of the year, some banks did record a higher CRR compared to others.

Stanbic IBTC for example had about 44.6 per cent of its deposits kept with the central bank as CRR. The effect can be seen in Stanbic’s interest income over the years.

From recording an interest income of N91 billion in the first nine months of 2019, the bank’s income from interest dropped to N81.9 and N73 billion in the first nine months of 2020 and 2021, respectively. The CRR of N488 billion is also 59 per cent of its loan book of N827 billion.

Union Bank also reported a significantly higher CRR to deposits at 36.2 per cent after the apex bank kept N464 billion of its deposits. Other banks under review had CRR below the regulatory limits in the first nine months of the year.

Access Bank leads with the highest CRR of N1.37 trillion and is closely followed by Zenith bank and FBNH. They are also the top three banks in terms of customer deposits.

Previous Post

Nigeria Inflation Hits 15.40% amid High Prices

Next Post

Naira Remains Relatively Stable to Naira Trades at N573/$1 as Forex Transactions Declines

Related News

Ethereum breaks below $1,800 as selling pressure accelerates

Ethereum breaks below $1,800 as selling pressure accelerates

by Rate Captain
May 27, 2022
0

The world's second most valuable cryptocurrency continued its slide in early trading in Europe on Friday, as participants fretted about...

CBN governor respond to APC 100M president form

CBN’s N143 billion treasury bills auction records 47% oversubscription

by Rate Captain
May 26, 2022
0

The Central Bank of Nigeria’s (CBN) Treasury Bills for a 1-year tenor worth N143.88 billion, which was auctioned on Wednesday,...

Russia reduces interest rate to 11% amid surge of the ruble

Russia reduces interest rate to 11% amid surge of the ruble

by Rate Captain
May 26, 2022
0

Russia’s central bank slashed interest rates to 11% for the third time in less than a month, boosted by lower...

Tether, USDT market cap has dropped by US$10B since UST collapse

Terra community passes proposal to revive LUNA cryptocurrency following stablecoin-led implosion

by Rate Captain
May 26, 2022
0

Nine days ago, Terraform Labs founder Do Kwon shared a plan to revive the Terra Ecosystem after its stablecoin UST...

Next Post

Naira Remains Relatively Stable to Naira Trades at N573/$1 as Forex Transactions Declines

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Google hit by second UK antitrust probe into online ad

Google hit by second UK antitrust probe into online ad

May 27, 2022
Ethereum breaks below $1,800 as selling pressure accelerates

Ethereum breaks below $1,800 as selling pressure accelerates

May 27, 2022

Popular Story

    Rate Captain

    RateCaptain

    We bring you the most accurate in new and market data. Check our landing page for details.

    • FX Rates
    • Commodities
    • Money Market
    • Cryptocurrency
    • Corporates
    • Contact Us

    Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

    No Result
    View All Result
    • FX Rates
    • Commodities
    • Money Market
    • Cryptocurrency
    • Corporates
    • Contact Us

    Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.