Section 45: Reserve Requirements.

(1) The Bank may, from time to time, issue directives by circular requiring each bank to-
(a) maintain at all times in the form of cash reserves with the Bank, at its office, a sum equal to a prescribed ratio of the bank's deposit liabilities ;
(b) hold a minimum amount of specified liquid assets which shall be expressed as a ratio of deposit liabilities of the bank; and
(c) maintain as special deposits with the Bank at its Head Office a percentage of the bank's deposit liabilities or a percentage of an increase or the absolute increase in such deposit liabilities over an amount outstanding on a date, and for a period as shall be specified by the Bank.
(2) For the purpose of Sub-section (1) (a) of this section, the Bank shall specify-
(a) the class of desposit liabilities against which the cash reserves mentioned in that paragraph shall be held; and
(b) the ratio of cash reserve which a bank shall so maintain.
(3) For the purpose of Sub-section(1) (a) of this section, the cash reserves of a bank shall be determined within such period as the Bank may, from time to time, specify, on the basis of the periodic balances of the bank's deposit liabilities and the Bank shall have power to-
(a) require each bank from time to time to prepare and deliver to the Bank in such form and within such period as the Bank may specify, a true and correct statement showing the position of the deposit liabilities of the bank and the Bank may require such statement to be made at such intervals as it may specify ;
(b) require any bank to furnish to it such information and statistics in such form and as often as the Bank may deem necessary for the purpose of satisfying itself that the bank concerned has complied or is complying with the provisions of Subsection (1) of this section.
(4) For the purpose of Sub-section (1) (b) of this section, the Bank shall have power, in respect of the specified liquid assets which may, from time to time, be held by a bank, to vary the composition and proportion of each category.
(5) For the purpose of Sub-section (1) (c) of this section, the Bank shall have power to specify the class of deposits to which the provisions of that Sub-section shall apply and any special deposits held in accordance with that Sub-section shall not count as specified liquid assets for the purposes of Sub-section (1) (b) of this section, and subject to the provisions of this Sub-section, the Bank may, at its discretion, pay interest on such special deposits held by it.
(6) The Bank shall have power to prohibit any bank which fails to comply with any directive issued under this section, from extending new loans and advances and from undertaking new investments, until the bank complies with the directive to the satisfaction of the Bank; and may, in addition, levy fine as appropriate under the provisions of section 13 (5) of the Banks and Other Financial institutions Act.
(7) A bank which furnishes false information to the Bank for any purpose under this section is guilty of an offence and is liable on conviction to a fine not less than N10,000,000 but not exceeding N20,000,000.