RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Banking

CBN Revises Cash Reserve Ratio for Merchant Banks, Slashing it to 10%

Stephen Akudike by Stephen Akudike
September 13, 2023
in Banking, Economy
Reading Time: 2 mins read
A A
0
CBN Revises Cash Reserve Ratio for Merchant Banks, Slashing it to 10%
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

In a move aimed at stimulating economic growth, the Central Bank of Nigeria (CBN) announced on Friday its decision to revise the Cash Reserve Ratio (CRR) for merchant banks. The CRR has been reduced from 32.5 percent to 10 percent, marking a substantial shift from the previous policy.

This revision was disclosed by Haruna Mustafa, the director of banking supervision, in a letter addressed to all merchant banks on July 14, 2023. The CRR represents the portion of a bank’s total customer deposit that is required to be deposited with the central bank.

AlsoRead

 Nigerian Money Supply Experiences Minor Dip in August 2023

Nigerian Senate Gears Up for Busy Session: CBN Governor Confirmation Tops Agenda

Deteriorating Apapa-Wharf Road Poses a Risk to N2.6 Trillion in Customs Revenue

The latest adjustment in the CRR follows a significant increase implemented by the Monetary Policy Committee (MPC) in September of the previous year. At that time, the CRR was raised from 27.5 percent to 32.5 percent as a measure to curb inflationary pressures.

The decision to slash the CRR is seen as a proactive step by the CBN to boost liquidity in the banking system and stimulate lending to businesses and individuals. By reducing the amount of funds that merchant banks are required to keep with the central bank, more resources will be available for lending, thereby fostering economic growth and development.

This move is expected to have a positive impact on the Nigerian economy, as it will enhance the availability of credit for productive sectors and promote investment. The reduction in the CRR is likely to encourage banks to offer more loans at lower interest rates, making borrowing more affordable for businesses and consumers.

In addition to the potential benefits for borrowers, the revision of the CRR is also expected to strengthen the liquidity position of merchant banks. With a lower reserve requirement, banks will have greater flexibility in managing their funds, enabling them to allocate resources more efficiently and respond effectively to the financing needs of the economy.

The CBN’s decision to revise the CRR reflects its commitment to implementing policies that support economic growth and stability. By closely monitoring market conditions and adjusting regulatory requirements accordingly, the central bank aims to create an enabling environment for businesses to thrive and promote sustainable economic development.

Market analysts and industry experts have welcomed the CBN’s move, noting its potential to stimulate lending and invigorate economic activity. As the revised CRR takes effect, the focus now turns to how merchant banks will respond to the new policy and the subsequent impact on the broader economy.

In conclusion, the Central Bank of Nigeria’s decision to revise the Cash Reserve Ratio for merchant banks from 32.5 percent to 10 percent demonstrates its commitment to fostering economic growth. This move is expected to enhance liquidity, promote lending, and create favorable conditions for businesses and consumers alike. The reduction in the CRR marks a significant step towards driving sustainable economic development in Nigeria.

Tags: #Investmentbanking supervisionborrowingCash Reserve RatioCBNCentral Bank of NigeriaCRREconomic GrowthInflationary pressureinterest rateslendingLiquiditymerchant banksMonetary Policy CommitteeMPCNigerian economysustainable development
Previous Post

CBN Mandates Approval from Central Bank for Acquiring 5% Stake in Nigerian Banks

Next Post

Naira-Dollar Exchange Rate Plummets to Lowest Ever at N803/$1

Related News

 Nigerian Money Supply Experiences Minor Dip in August 2023

 Nigerian Money Supply Experiences Minor Dip in August 2023

by Stephen Akudike
September 26, 2023
0

Nigeria's money supply, specifically the M1 money supply category, witnessed a slight decline of 0.56 percent in August 2023, dropping...

CBN bans foreign bank representative offices from engaging in banking business in Nigeria..

Nigerian Senate Gears Up for Busy Session: CBN Governor Confirmation Tops Agenda

by Stephen Akudike
September 26, 2023
0

As the 10th Senate reconvenes following its annual recess, expectations are running high for the expeditious confirmation of Olayemi Cardoso...

Deteriorating Apapa-Wharf Road Poses a Risk to N2.6 Trillion in Customs Revenue

Deteriorating Apapa-Wharf Road Poses a Risk to N2.6 Trillion in Customs Revenue

by Victoria Attah
September 26, 2023
0

The Apapa-Wharf Road, a crucial gateway to Nigeria's premier and busiest seaport in Apapa, has descended into a state of...

Nigeria’s Upstream Capital Expenditure Declines to $6 Billion, Regulatory Uncertainty Cited

Nigeria’s Upstream Capital Expenditure Declines to $6 Billion, Regulatory Uncertainty Cited

by Victoria Attah
September 25, 2023
0

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a significant decline in the country's annual upstream capital expenditure (CAPEX)...

Next Post
Naira-Dollar Exchange Rate Plummets to Lowest Ever at N803/$1

Naira-Dollar Exchange Rate Plummets to Lowest Ever at N803/$1

Leave a Reply Cancel reply

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

Recommended

Dave Limp to Replace Bob Smith as Blue Origin CEO Amidst Key Space Projects

Dave Limp to Replace Bob Smith as Blue Origin CEO Amidst Key Space Projects

September 26, 2023
 Nigerian Money Supply Experiences Minor Dip in August 2023

 Nigerian Money Supply Experiences Minor Dip in August 2023

September 26, 2023

Popular Story

  • Deteriorating Apapa-Wharf Road Poses a Risk to N2.6 Trillion in Customs Revenue

    Deteriorating Apapa-Wharf Road Poses a Risk to N2.6 Trillion in Customs Revenue

    0 shares
    Share 0 Tweet 0
  • FirstBank Technology Academy Opens Application For Young Graduates to Explore Tech Careers.

    0 shares
    Share 0 Tweet 0
  • Key Pitfalls to Avoid in Forex Trading: Tips for Success

    0 shares
    Share 0 Tweet 0
  • Nigerian Senate Gears Up for Busy Session: CBN Governor Confirmation Tops Agenda

    0 shares
    Share 0 Tweet 0
  •  Nigerian Money Supply Experiences Minor Dip in August 2023

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

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

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

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

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
?>