Rising from the bankers committee meeting, the commercial banks have called on the Central Bank of Nigeria (CBN) to hasten the release of the five per cent Cash Reserve Ratio (CRR) which it promised would be plagued back to the banks for increased lending to the real sector

The CBN after its Monetary Policy Committee (MPC) meeting in November 2015 slashed the Monetary Policy Rate (MPR) otherwise known as lending rate to 11 per cent from 13 per cent and reduced its CRR from 25 per cent to 20 per cent to increase liquidity in the system.

The CBN Governor, Godwin Emefiele, at the 247th meeting of the MPC said the liquidity arising from the reduction of the CRR will only be released to the banks that are willing to channel it to employment generating activities in the economy such as agriculture, infrastructure and solid minerals.

Nnamdi Okonkwo, Managing Director & Chief Executive Officer of Fidelity while addressing the reporters after the meeting said: “When the CRR was reduced by 5 per cent, the intention was to release the amount to the banks to enable them avail the real sector borrowers at a single digit.

“We discussed around that and agreed that the Central bank will need to work out modality and hasten action towards releasing this 5 per cent drop in CRR to the bank to lend to the reel sector and we we are looking forward to making that real.”

CRR is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the Central Bank of Nigeria.

This demand is coming on the heels of reduced lending to the reel sector on account of increasing Non Performing Loan (NPL) portfolio of commercial banks which has seen around N500 billion provision on the balance sheet of commercial banks for the year ended 2015

The amount of bad loans in the banking industry rose sharply by 78.8 per cent to N649.63 billion in 2015, indicating severe deterioration in the quality of the loan portfolio of the 22 banks. This was contained in a Central Bank of Nigeria (CBN) Staff report presented to the Monetary Policy Committee (MPC).

According to the Central Bank of Nigeria (CBN) Staff report presented to the Monetary Policy Committee

there was a general increase in bad loans (non performing loans) among the 22 Deposit Money Banks in the country. This was despite 30 per cent decline in new loans granted by banks in 2015 to N5.78 trillion.

Also speaking at the briefing, CBN Director Banking Supervision, Tokunbo Martins disclosed the approval of two new super agents that are supposed to distribute banking products at cheaper prices which will hopefully carry banking services to the nook and cranny of this country

http://www.dailytrust.com.ng/news/business/we-need-more-cash-banks-tell-cbn/141507.html

Good news to borrowers and all Nigerians

olorunda68:
Good news to borrowers and all Nigerians

Let's see how it goes.

Abeg where fuel dey sell?

Let's start doing yahoo yahoo naa. Dats d solution

Make them sign budget na!

Issorite

Even if this happens, I don't see how we can get single digit borrowing overnight when rates are over 20 percent.

Buhari needs sound economic tutorials and he should begin to listen to experts.

I thought the CBN recently withdrew billions of Naira fron circulation to reduce liquidity and induce deflation. Why are they making policies that would encourage liquidity and inflation again? I am not suprised at the alarming rate of bad loans, the economic crunch is working.

Okay

nastyesco:
Abeg where fuel dey sell?

There's fuel in NNPC located inside aso villa. Just go there and buy yours no cue or stress.

Hmmmmmmmmmm

i need more cash 2 So No b only Banks oooh.

Lolz

olorunda68:
Good news to borrowers and all Nigerians

@Borrowers ....Lamfao

I hear se plane wa carry boko hari crash last night..na true

In other News, Let's pray for the Zombies just as they used to pray for the Wailers then:

May God treat you the way Bubu is treating Nigerians. Can I hear some loud Amens?

I noticed this same shît yesterday and was about to go haywire on a UBA staff, thinking it was their fault.. Just a few hundreds of k and they told me cash wasn't available. Had to spend over 3 hours at their bank coupled with BVN issues before I was able to make my withdrawal and subsequently entered the market to get me some stuffs..

Sb

Really?

Okay we have heard.....NEXT

Since I never collect salary in months, I no dey enter banking hall again.

\

Be careful about your money in the Nigeria banks.

Banks liquidation may be around the corner.

There will be no signs. You go to the bank on friday and on monday you see locked gates manned by Mopols. Then it will be too late. That has always been their modus operandi.

Forewarned is forearmed.

/

#Bringback our Naira.

It is a laudable initiative on "paper" but banks are not so eager to lend because of the current economic climate, not to talk of the rigorous approval process in most banks.

Again, agriculture is considered as a risky sector by many banks, same for solid minerals.

Endtime Cash Needers.

Omo.... 9ja iyaf spoilt.....

InvertedHammer:

\

Be careful about your money in the Nigeria banks.

Banks liquidation may be around the corner.

There will be no signs. You go to the bank on friday and on monday you see locked gates manned by Mopols. Then it will be too late. That has always been their modus operandi.

Forewarned is forearmed.

/

Guy this your alarm is somehow

No be small case

Ok