Commercial banks in the country have called on the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, to honour his promise of releasing five per cent Cash Reserve Ratio (CRR) which he promised would be ploughed 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.
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 Bank after the meeting of the Bankers Committee 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. Read more