President, Abuja Chamber of Commerce, Industries, Mines and Agriculture, NACCIMA, Mr Tony Ejinkonye has tasked banks to strictly adhere to the new policy guiding the Cash Reserve Ratio, CRR to ensure that the growth the policy is supposed to stimulate in the economy is achieved. Ejinkonye gave the charge yesterday in Abuja during an interview with journalists.
According to him, “The banks should make sure they comply strictly to the provisions of the CBN on the resolve to lower the CRR and ensure full implementation of the directives for the overall interest of our national economy.”
Ejinkonye, who commended Monetary Policy Committee, MPC members for lowering the CRR stated that the policy will be far- reaching to stimulate sustainable out-put growth in the country if increased lending or credit delivery is channeled to sectors that have growth and employment elasticity which is always paramount in adjustment of CRR. “Therefore I reiterate that the policy if well implemented will enhance economic growth,” he said.
It would be recalled that during the MPC press briefing, CBN Governor, Godwin Emefiele decried that the previous liquidity injections embarked upon through lowering of the CRR, did not transmit significantly to improved credit delivery to key growth and employment in sensitive sectors of the economy, because banks channeled credit to sectors with low employment elasticity.
Following that, Emefiele said that the Committee decided to evolve and implement measures that would be supportive of consolidating and strengthening in output growth with an eye on price stability.
Speaking further, Ejinkonye said that double digit interest rate over the years has contributed to the mass reduction of balance sheet channel of businesses and individuals reduction of net worth of businesses and individuals it has also made banks less profitable in general and thus less willing to lend.
He however, pointed that exports have turn out to be viable with cost of factors of production which has remained relatively cheap through strict exchange rate policy of the apex bank.
The ACCI boss said that the current economic adversity occasioned by global brittle economic environment has continued to raise great concern amongst business leaders around the globe. According to him, “even in Nigeria, traders in the market place are complaining of low sale which is caused by the unfriendly macro-economic environment.”

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