CBN’s high CRR costs Nigerian banks N2.5trn yearly – Report

A recent report by investment banking and research firm Chapel Hill Denham indicates that Nigeria's banking sector is incurring losses of approximately N2.5 trillion each year as a result of the Central Bank of Nigeria's elevated Cash Reserve Ratio (CRR). The report, titled “The Nigerian Banking Paradox: High Returns, Deep Discounts,” highlights that despite the high returns reported by banks, they continue to trade at significantly reduced valuations. This financial strain is attributed to the regulatory requirements imposed by the CBN, which are impacting the overall profitability of the banks.

Read More