There was always something wide off the mark with the idea of restricting the interest rates banks pay on savings account deposits. The Central Bank of Nigeria (CBN) currently has this cap at about a third of its Monetary Policy Rate (MPR). As with all attempts at price control, one outcome of this policy is the proliferation of perverse responses. Predictably, one suggestion is that only a few banks in the country pay interest rates on savings deposits at more than 5 per cent per…
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