Banks In Crisis, As Overnight Lending Rises By Over 44%

Exactly two weeks ago, the Central Bank of Nigeria's Monetary Policy Committee raised the Cash Reserve Ratio on private sector deposits from 15 per cent to 20 per cent.

The effect of the above action is now telling on banks seriously, as Deposit Money Banks are experiencing difficulties in raising adequate cash to meet their daily obligations and operations, investigation by our correspondent has revealed.

Officials of banks confirmed on Monday that the development had made the overnight lending rate of the Nigerian Interbank Offer Rate to rise to 44 per cent, down from around 13 per cent a month ago.

Click to read more...http://talkafrica.co/ng/p/9242/nigerian-banks-in-trouble-overnight-lending-now-44
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