Central Bank Nigeria cracks the whip

Banking is becoming both interesting and challenging for Nigerian lenders. Seven months ago, the Central Bank of Nigeria (CBN) raised the Cash Reserve Requirement (CRR) on public sector funds yet again, from 50% to 75%. It had raised it from 12% to 50% last August. The policy has resulted in a large portion of government funds being removed from the vault of bank and kept with the Central Bank.