Dr Samuel Nzekwe, a financial analyst, has commended the Central Bank of Nigeria (CBN) for reducing the Cash Reserve Ratio (CRR) of Merchant Banks from 32.5% to 10.
Nzekwe, who is also the former President, Association of National Accountants of Nigeria (ANAN), gave the commendation in an interview with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun. He spoke against the backdrop of CBN’s decision to reduce the CRR from 32.5% to 10.
NAN reports that the apex bank on July 14, through the CBN Director, Banking Supervision Department, Mr Haruna Mustafa, announced in a circular that the CRR of Merchant Banks had been reduced from 32.5 per cent to 10.
The analyst said that the reduction was a welcome development as this would make more funds available to boost and facilitate international trades and investments.
“This is a good development as this would create employment opportunities for the youth in the country.
“In addition, since the merchant banks are specialised banks who deal with trade finance, real estates, issuing of letter of credit, this would automatically create more platform for private sector to thrive,” he said.
Nzekwe noted that this would also enhance their operations, as they were not like Deposit Money Banks who received money from customers. He stressed the need for the apex bank to separate the merchant banks from deposit money banks, to achieve their set goals.