New CBN Policy Cancels Interest Payment To Banks With Above N2Bn Deposit

Yemisi Izuora 

Henceforth, banks making deposits in excess of two billion naira, (N2billion) would not be recompensed following a new policy adopted by the Central Bank of Nigeria, CBN.

The CBN, said lenders will no longer receive interest payments on deposits exceeding N2 billion.

The CBN said in statement posted on its website on Wednesday: “Any deposit by a bank in excess of 2 billion naira shall not be remunerated.”

The statement signed by the Director, Financial Markets Department of the apex bank Angela Sere-Ejembi, said that “the remunerable daily placements by banks at the Standing Deposits Facility (SDF) shall not exceed N2billion” and will pay interest to lenders on qualified deposits at a rate determined by the Monetary Policy Committee (MPC) from time to time.

The provision takes effects from today July 11th, 2019.

It would be recalled that the CBN last week told banks to increase their loan-to-deposit ratio to at least 60 per cent by September or face penalty as it seeks to boost loans to the real sector and bolster growth.

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