Regulatory Alerts2011-07-28 | 48561906Banking Circular No 7 of 2011 - The Central Bank Rate and Cash Reserve Ratio
The Monetary Policy Committee decided to maintain the Central Bank Rate at 6.25% and adjust the Cash Reserve Ratio requirement to a weekly average of 4.75%, effective immediately. Commercial banks can deviate from the 4.75% ratio on a given day as long as the overall average for the week remains at that level; failure to maintain the average will result in penalties.
Telephone: 2860000, Fax: 3 28 July 2011 BANKING CIRCULAR NO. 7 OF 2011 ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS TO: THE CENTRAL BANK RATE (CBR) AND CASH RESERVE RATIO (CRR) The Monetary Policy Committee (MPC) at its meeting on 27th July 2011 decided to maintain the CBR at 6.25%.
On Cash Reserve Ratio, commercial banks will now be required to maintain the same based on a weekly average (Monday to Friday) of 4.75% instead of the daily position. This means that banks are free to deviate from the 4.75% on any given day provided that the overall average for the five (5) days will be 4.75%. Failure to observe the required average will lead to penalization by the Central Bank at the current rate.
The above changes take effect immediately.
ECTOR, BANKING SERVICES, NATIONAL PAYMENT SYSTEMS & RISK MANAGEMENT DEPARTMENT Telephone: 2860000, Fax: 3 28 July 2011 BANKING CIRCULAR NO. 7 OF 2011 ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS TO: THE CENTRAL BANK RATE (CBR) AND CASH RESERVE RATIO (CRR) The Monetary Policy Committee (MPC) at its meeting on 27th July 2011 decided to maintain the CBR at 6.25%.
On Cash Reserve Ratio, commercial banks will now be required to maintain the same based on a weekly average (Monday to Friday) of 4.75% instead of the daily position. This means that banks are free to deviate from the 4.75% on any given day provided that the overall average for the five (5) days will be 4.75%. Failure to observe the required average will lead to penalization by the Central Bank at the current rate.
The above changes take effect immediately.
ECTOR, BANKING SERVICES, NATIONAL PAYMENT SYSTEMS & RISK MANAGEMENT DEPARTMENT