The bank said this in its forecast of the economy titled ‘Nigeria Macro-Economic and Banking Sector Themes for 2022’.
CRR is a percentage of a bank’s total deposit which it must maintain with the apex bank at all times.In 2020, CBN’s monetary policy committee increased CRR by five percent from 22.5 percent to 27.5 percent in its efforts to address monetary-induced inflation.a total of N356.1billion from 14 banks for failing to meet its 27.5 percent obligation, also known as the cash reserve requirement.
“The year could witness an intensified competition for deposits not only between banks and non-bank competitors but also with the federal government as a result of FGN Sukuk Bond issuances and possible pick up of the e-naira, effectively taking away deposits from banks,” the report added. “In view of an expected increase in government borrowing on the back of a higher budget deficit and dwindling revenue, a low-interest rate regime might not hold for much longer,” the report said.