The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has enjoined the apex Bank to expedite action on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalized world.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 294th meeting on the 25th and 26th of March 2024 to review recent economic and financial developments as well as assess risks to the outlook.
The Committee’s decisions are as follows:
- Raise the MPR by 200 basis points to 24.75 per cent from 22.75 per cent.
- Adjust the asymmetric corridor around the MPR to +100/-300 basis points
- Retain the Cash Reserve Ratio of Deposit Money Banks at 45.0 per cent.
- Adjust the Cash Reserve Ratio of Merchant Banks from 10.0 per cent to 14.0 per cent
- Retain the Liquidity Ratio at 30.0 per cent
Reviewing the developments in the banking system, the MPC noted that the industry remains safe, sound, and stable.
The Committee thus, called on the Bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macroprudential guidelines.