GTBank Business and Financial Performance
Regulatory environment
Regulatory Pronouncement
Monetary Policy Rate (MPR) increased by 100
basis points from 12% to 13%
Cash Reserve Ratio (CRR) on public sector
deposits remained constant at 75% while CRR on
private sector deposits was increased from 15%
to 20%
Effective Dates
November 25, 2014
Rationale
GTBank
Aimed at curbing the excess liquidity in the
banking system and protecting the Naira which
was increasingly at risk due to the sharp decline in
oil prices
CBN issued a plethora of FX related regulations December - January, 2015
such as the introduction of the FX prudential
guidelines, adjustments to Bank's allowable Net
Open fx Positions etc.
To stabilise the Naira by reducing perceived
currency speculation
CBN closes RDAS window, resulting in a tacit
devaluation
February 17, 2015
In a search for price discovery and stability, and to
prevent further erosion of the reserves, the CBN
closed the official window
CBN placed a cap on the spread charged by February, 2015
banks on purchase and sale of fx from and to
customers (For purchase: CBN sell rate +N2,
Sale: Bank purchase rate +50Kobo)
The CBN commenced the Treasury Single
Account Initiative which automates revenue
collections from Ministries, Departments and
Agencies (MDAs) into the Consolidated Revenue
Fund (CRF) account
March 16, 2015
To curb speculative devaluation, and instill
confidence in the new exchange rate
To curb perceived market liquidity, protect the
Naira from further devaluation, and eliminate
abuse of and dependence on public sector
deposits by banksView entire presentation