Connect with us
X
Categories:

Business

CBN bills launched to improve liquidity in commercial banks

All Naija Entertainment

Published

on

Central Bank of Nigeria

The Central Bank of Nigeria (CBN) has introduced special bills aiming to consolidate the nation’s financial markets and make capital more available to lenders.

Download & Install The New ANE Android App To Your Device
Hello!! Have you heard about the deadly virus called Coronavirus? No? See What It Is & How To Prevent It Here. Also Stay Connected & Get Latest Updates On Coronavirus Here. Please be safe! We LOVE You.


The CBN bills will equally “avail the monetary authority with an additional liquidity management tool,” said the CBN Wednesday in a statement on its website endorsed by Bello Hassan, its director of banking supervision.

Nigeria, Africa’s largest economy, is in the throes of a second recession since 2016, after its gross domestic product tapered for the second quarter running in the third quarter as the pandemic outbreak and a slump in the prices of crude, its chief export, eroded government revenues and crippled businesses.

“The CBN will continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth,” the document said.

The CBN bills are anticipated to enhance lenders’ liquidity ratios, a metric used for establishing the capacity of a debtor to fulfil its debt commitments without recourse to external capital. Banks’ liquidity ratios have been strained through cash reserve debits by CBN.

In January, the regulator raised the Cash Reserve Requirement (CRR) of the banking industry from 22.5% to 27.5%, compelling lenders to increase the rate of cash to keep in reserve out of the total deposits mobilised from customers.

It said the move would reduce excess liquidity in the system and help control inflationary pressure.

The CBN debits the accounts of banks periodically for failure to meet the CRR as well as a loan-to-deposit ratio currently 65%.

The new CBN bills have a 90-day tenor and will be tradable among banks, institutional and retail investors.

They will be considered as liquid assets in the automation of the liquidity ratio for commercial banks.

“The instrument won’t be accepted for repurchase agreement transactions with the central bank and aren’t discountable at the CBN window,” the apex bank said.


Get More Stories Like This On: Facebook: @AllNaijaEntertainment, Twitter: @AllNaijaEntertainment
Reach us on WhatsApp via: +2348104471989

Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Don’t Miss!

Join "ANE sabi" clique

Don't miss a thing, get ogbonge ANE latest updates to fuel your conversation daily.




Latest Exchange Rate

Donate To ANE!


Mind buying a coffee to support us here at All Naija Entertainment?. Yes?

Donate Now
BITCOiN
Technology5 days ago

Best Time to Sell Your Bitcoin [EASY GUIDE]

BITCOiN
Technology5 days ago

Bitcoin Crashes, Loses $10,000 In Value

News5 days ago

30 Million Nigerians Will Be On Drugs By 2050 – NDLEA

Cristiano Ronaldo
Sports5 days ago

Serie A: Ronaldo’s Brace Set Juventus Free From Crotone

News5 days ago

Fulani Herdsmen Deserve Better Treatment From Nigerians – Bauchi Former Gov

Justin Trudeau
News5 days ago

Insecurity: Canada Issue Warning to Citizens Against Traveling to Nigeria

NCDC Chairman Chikwe Ihekweazu
News5 days ago

Nigeria Govt Confirms Discovery Of New Covid-19 Variant, 15 Others

Akwa Ibom Best Hotels ANE Travels
Lifestyle5 days ago

How To Detect Hidden Camera in a Hotel Room!!

WhatsApp
Technology5 days ago

WhatsApp To Deactivate Messages For Users Who Reject New Terms!!

Nissi
Entertainment5 days ago

Afro-Jazz/funk Singer, Nissi’s ‘Move X 2’ Is A Rare Delightful Visual

Kim Kardashian
Entertainment5 days ago

Kim Kardashian Officially Files For Divorce From Kanye West!!

Kanye West
Entertainment5 days ago

Kanye West Thinks Kim Kardashian Is Divorcing Him Because Of Presidential Run

Banky W and Adesua Pregnant
Entertainment5 days ago

Banky W, Adesua Etomi Welcome Baby Boy!!

JImoh Ibrahim
News5 days ago

Jimoh Ibrahim: Court Vacates Order Against Assets Over Alleged N69.4bn Debt

Business5 days ago

Nigeria To Supply Electricity To Togo From Calabar Power Plant

Victor Osimhen
Sports5 days ago

Napoli Confirm Victor Osimhen Head Injury, Say No ‘conclusive Result’ After Tests

The headies Awards
Entertainment5 days ago

The Headies Awards 2021 Winners Full List

HER JOURNEY Story
Stories7 days ago

[STORY] HER JOURNEY (Final Episode 10)

HER JOURNEY Story
Stories7 days ago

[STORY] HER JOURNEY (Episode 09)

HER JOURNEY Story
Stories7 days ago

[STORY] HER JOURNEY (Episodes 08)

ANE Billboard Hots!



Join "ANE sabi" clique

Don't miss a thing, get ogbonge ANE latest updates to fuel your conversation daily.





Copyright © All Naija Entertainment.

css.php