BANKS TO REDUCE LENDING AS CRR INCREASES

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With the plan to bring the Cash Reserve Ratio from 75% to 100% by the Central Bank of Nigeria set to kick in soon, stakeholders have said there will be less cash to lend the public. The CBN decided to move all public sector funds domiciled in private commercial banks back to the CBN.

This the CBN did to minimise the amount of cash in the system as the election year draws nearer. Managing Director of First Bank of Nigeria PLC, Mr. Bisi Onasanya said the country had to choose between being physiologically stable or driving real sector growth. He also said the economy framework as it is cannot drive any real growth. Is the CBN doing the right thing?

Read More: Banks reduce lending