👉 Relocate to Canada Today!

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

MetroNewsSociety

Banks’ borrowing from CBN rises 12% to N2trn

Under the Standing Lending Facility (SLF) and Repo lending, the Central Bank of Nigerias (CBN) borrowing from deposit banks increased year over year (YoY) by 12% to N2.02 trillion in September 2022.

The Standing Financing Facility (SLF) and Repo lending are two short-term lending options offered to banks by the CBN.Infomation Guide Nigeria


👉 Relocate to Canada Today!

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

While the CBN lends money to banks via the SLF at an interest rate that is 100 basis points (bpts) above the Monetary Policy Rate (MPR), it also lends money via repurchase (Repo) agreements, which entail the purchase of banks’ securities with the intent to resell at a specific date and typically for a higher price.

On the other hand, the CBN offers its Standing Deposit Facility (SDF), through which banks can deposit funds, and pays an interest rate that is 700 basis points less than the MPR.

Other Top Stories:

According to data from the CBN Financial Statistics for September 2022, banks’ borrowing under repo agreements increased by 13% YoY in September 2022 compared to September 2021, to N1.19 trillion from N1.05 trillion.

In a similar vein, bank borrowing under the SLF of the CBN increased YoY by 10% to N836.48 billion in September 2022 from N756.37 billion in September 2021.

As a result, banks’ borrowing through the SLF and Repo from the apex bank increased by 63% YoY to N2.02 trillion in September 2022 from N1.8 trillion in September 2021.

Further study of the data revealed that bank deposits in the SDF of the CBN also increased YoY by 23.5 percent, from N210.6 billion in September 2021 to N260.2 billion in September 2022.

The banking industry underperforms all other sectors year to date (ytd), with the exception of industrial, according to Cowry Assets Management Limited analysts’ Macroeconomic outlook for the second half of 2022.

👉 Relocate to Canada Today!

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

Group Managing Director, Cowry Asset Management Group, Mr. Johnson Chukwu  said: “The industry lags behind every other sector bar Industrial in the ytd performance.Jamb Result 

The NGX Banking Index dropped from 406.1 index points to 378.2 index points, depreciating by -6.86 percent. Given adverse operating conditions currently observed, there will be a higher proportion of Non-performing Loans (NPLs) in the banking sector.

Check Jamb Result 
Check and Confirm: How much is Dollar to Naira

📢 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