Commercial banks  were yesterday directed by the Central Bank of Nigeria (CBN) to pledge N1 billion collateral in Government/CBN Securities to participate in Over-the-Counter (OTC) trade settlement.

A circular to all Deposit Money Banks (DMBs) signed by CBN Director, Financial Markets Department, Alvan Ikoku, attributed the policy to the regulator’s plan to enhance efficiency in trading and post-trade activities. The policy, it added, will also help build confidence in the financial markets.

The pledge requirement, Ikoku said, is mandatory for all DMBs that wish to participate in OTC trade settlement. “Lack of provision for the pledge or failure to top-up a pledge when required will result in exclusion from the market. The circular takes effect from June 1, 2018 (today),” he said.

Meanwhile, President Muhammadu Buhari has formally accepted the disengagement of the Deputy Governor in charge of Operations at the Central Bank of Nigeria (CBN), Adebayo Adelabu, with effect from July 15, 2018.

In a letter dated May 24, 2018 and personally signed by him, President Buhari thanked Adelabu for his services to the country and wished him the best in his future ambitions.

Mr. Adelabu formally assumed duty as Deputy Governor at the Central Bank of Nigeria (CBN) on April 9, 2014 and served at different times as Deputy Governor in charge of Financial System Stability (FSS), Corporate Services (CS), and lastly Operations (Ops), before he tendered his letter of disengagement.