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The Central Bank of Nigeria has deducted a total of N838.8 billion from 15 banks as CRR allowance

Several Nigerian banks have had a total of N838.82 billion taken out of them by the Central Bank of Nigeria. The CBN’s initiative to remove liquidity from the Nigerian economy is what led to this.

The apex bank does not formally share the list of banks it debits, thus the financial information journal Nairametrics obtained this information from a trustworthy source.

But the bank made it clear at its most recent monetary policy meeting that it would debit banks in an effort to stop the expansion of the money supply.

The Central Bank’s deduction of funds satisfied the minimal 32.5% CRR criteria imposed by it. The bank had previously increased the CRR from 27.5% to a minimum of 32.5% while keeping the liquidity ratio at 30%.

The current high levels of inflation in the nation make the growth in CRR a necessary evil at this time in its economic history.

The CBN governor, Godwin Emefiele, announced during the MOC meeting that the bank will begin aggressively enforcing its cash reserve requirements by snatching away liquidity from commercial banks by Thursday, September 29, 2022.

This is a component of its strategy to counteract the nation’s rising rate of inflation by using the dual monetary policy of interest rates and CRR.

Zenith, Access, UBA, FCMB, Fidelity, FBN, Union, Keystone, Titan, Polaris, Nova, Unity, Heritage, FBN Mortgage, and Suntrust Bank are among the banks that were debited from, according to Nairametrics.

Zenith Bank (N270 billion) and Access Bank are the two banks from whom money has been taken (N205 billion). UBA ($133.7 billion), FCMB ($90 billion), First Bank ($33 billion), Union Bank ($28.7 billion), Keystone ($13.8 billion), Titan ($11.6 billion), Polaris ($10 billion), Nova ($5.5 billion), Unity ($1 billion), and Heritage Bank ($1 billion) are the top financial institutions in Nigeria (N470 million). Suntrust Bank (N460 million) and FBN Microfinance Bank (N92 million).

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