👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

Business NewsNews

Commercial banks borrow N4.4tr from CBN in 3 months

Data obtained from the regulator indicated that during June and August, Deposit Money Banks (DMBs) accessed a total of N4.4 trillion from the Central Bank of Nigeria (CBN) through its overnight lending window.Information Guide Nigeria

Subject to certain qualifying restrictions, banks frequently use the CBN’s Standard Lending Facility (SLF) to borrow money to close their short-term liquidity gap. The Standing Deposit Facility (SDF) window, on the other hand, is another tool used by lenders to deposit extra money.


👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

Access to SLF by commercial banks is 100 basis points higher than the monetary policy rate (MPR). Lenders in the case of SDF receive 700 basis points less than the current benchmark interest rate (seven per cent).

Other Top Stories:

The total SLF for the months of June through August was N4.44 trillion, with June accounting for more than 43.3% of the total accessed during that time. In July, it was N1.46 trillion as opposed to N1.93 trillion in June. It fell even more last month, at 1.06 trillion.

Only in June did the SLF double its May value of N953.6 billion. The reflection observed during the past three months might have indicated a gradual easing of the banks’ struggles with short-term liquidity. It might also imply that banks have aggressively revised their risk assessments.JAMB Result

The behaviour of the SDF trend, which may be viewed as an increasing function of risk premium, in the two closely connected possibilities is also shown.

Repurchase orders (repo), a short-term agreement to sell securities and then buy them back at a slightly higher price that banks also employed to control temporal illiquidity, saw a 55.5 percent decline in activity last month. In August, the repo market was worth N1.36 trillion.

The three-month transaction was N6.08 trillion after repo transactions in June and July were N1.65 and N3.07 trillion, respectively.

Excess overnight deposits (SDF) increased in August, but the banks’ exposure to repo and SLF decreased. The patterns indicate that either banks were more risk averse or deposit mobilisation increased.

👉 Relocate to Canada Today!

Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to Canada

With the expansion, 34% of banks’ loan portfolios are now exposed to the public sector. This suggests that the government and its related institutions hold around one-third of commercial loans.

Although the amount of credit granted to the private sector rose during the time as well, the expansion was slower. From N34.92 trillion in December 2021 to N39.87 trillion in July, the sum increased.

Check and Confirm: How much is Dollar to Naira today  Pounds to Naira today

📢 We are hiring writers!

Article Writing Jobs - We are hiring good freelance writers - Click here to apply

Copyright Warning!

Contents on this website may not be republished, reproduced, or redistributed either in whole or in part without due permission or acknowledgment. . Proper acknowledgment includes, but not limited to (a) LINK BACK TO THE ARTICLE in the case of re-publication on online media, (b) Proper referencing in the case of usage in research, magazine, brochure, or academic purposes,. . All contents are protected by the Digital Millennium Copyright Act 1996 (DMCA). . . The images, except where otherwise indicated, are taken directly from the web, if some images were inserted by mistake violating the copyright, please contact the administrator for immediate removal.
. We publish all content with good intentions. If you own this content & believe your copyright was violated or infringed, please contact us  for immediate removal.

Emediong Silver

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing. Whatapp: 08088735884

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

It looks like you're using an ad blocker!

This website InfoGuideNigeria.com is maintained by the advertising revenue and we noticed you have ad-blocking enabled. Please disable Ad-Blocker