The Central Bank of Nigeria has received knocks from analysts and concerned voices over its soon to be introduced 50% Cash Reserve Requirement (CRR) on all public funds deposited with commercial banks. This rule will require commercial banks to forward 50% of all its deposits by any government entity to the CBN and is a system employed to mop up excess liquidity in circulation primarily to control inflation.
CBN Governor Lamido Sanusi |
CBN Governor Lamido Sanusi announced this at the end of a meeting of the Monetary Policy Committee (MPC) held in late July. He cited among a number of reasons, the fact that banks were receiving the monies at 0% interest and lending back to the government at 13 to 14 percent. However its suspected that this move is also designed to strangulate a stream of funds that government officials may use to prosecute the 2015 elections. The banks in total have about N1.3 Trillion Naira of public sector money. It didnt help matters that these our banks have been sporting such obscene balance sheets while they efficiently screen eager small and medium scale entrepreneurs by raising the risk management parameters that the average joe definitely cannot meet.
Financial analysts and eggheads alike have poured scorn on the decision on several fronts some of which are the fact that politicians do not patronise the banking system enough for the measures to limit spending public funds for the 2015 elections, that our romance with the "IMF manual" system of finance may demand the trimming of bank staff numbers due to the reduced balance sheet and hmm... that the Sanusi led MPC meeting had no business tinkering with banking supervision matters in the first place.
Capitalist food chain. |
Seriously I hope the baby faced assassins in the banks and their scowling board of directors do not use this as a reason to reach for the eject button in various Human Resources departments just before they order the 2014 Mercedes Benz "E class". Similarly CBN' needs to needs to get a grip on it's monetary policy flip flopping and focus on keeping our economy stable. These people should take it easy on the common man for once
"Putting people first" shouldn't be just a cliche.
Average DVD /CD Store |
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