CBN changes CRR rules, stops daily debits, introduces new mechanism & 2-phase framework, including a 50% CRR levy for banks under LDR.

The Central Bank of Nigeria (CBN) has implemented new guidelines for calculating and deducting cash reserve requirements (CRR) to increase banks' loan books. The CBN has stopped daily CRR debits and introduced a new mechanism to help banks with planning, monitoring, and record alignment. The updated CRR framework consists of two phases: Phase 1 applies the existing 32.5% ratio to increases in banks' weekly average adjusted deposits, while Phase 2 imposes a 50% CRR levy on lending shortfalls for banks not meeting the minimum Loan-to-Deposit Ratio (LDR).

February 02, 2024
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