The Central Bank has released a new circular reducing the timeline for computing CRR for most banks to two weeks only. This new rule places customer deposits under further regulations as banks now have to apply stricter controls to its liquidity management. See the press release here;
LETTER TO ALL BANKS RE: CASH RESERVE REQUIREMENT
MAINTENANCE CALENDAR FOR 2015 Further to our earlier letter referenced BSD/DIR/GEN/LAB/08/001 and dated 5th January 2015 on the above subject, all banks are invited to note the following changes to the cash reserve regime:
1. Henceforth, cash reserve requirement (CRR) would be computed on a fortnightly basis and effected every Thursday, commencing on 12th February 2015.
2. All banks should note that the CRR would be computed based on the incremental average deposits over the prior fortnight period.
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