Nigeria’s top 11 banks according to CRR deposited with CBN in the past 1 year

The banking system is a cycle of sorts, with deposits and withdrawals being made by customers. However, there is the extra factor of the banks’ lending depositors’ funds to other people in form of loans. If left unchecked, banks, who use these loans as an avenue of making money for themselves, could excessively loan out funds until their ability to meet withdrawal demands are jeopardized. It is to curb this that the CBN sets the Cash Reserve Ratio (CRR).

Cash reserve Ratio (CRR) is the amount of funds that commercial banks have to hold as reserves either in cash or as deposits with the CBN. The higher, the CRR, the less money commercial banks have with them for lending purposes. The CBN also uses this benchmark to control the amount of money in circulation. With CRR increased to 22.5% from 20% last year, Nigeria’s 11 Tier-1 and Tier-2 banks have deposited the following sums over the past 1 year with the CBN according to Leadership