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  • Banks’ borrowing from CBN falls 98% to N15bn
  • Banks’ borrowing from CBN falls 98% to N15bn
    Court orders CBN to unfreeze #EndSARS promoters’ accounts
    CBN

    …CBN’s interest  earnings drop 75%

    By Elizabeth Adegbesan

    MONEY MARKET

    In apparent reflection of the excess liquidity in the banking system, banks’ borrowing from the Central Bank of Nigeria (CBN) through the Standing Lending Facility (SLF) fell by 98 percent, year-on-year (YoY),   to N15.95 billion in November 2020 from N662.44 billion in November 2019.

    Consequently,   the apex bank’s interest earnings from the SLF fell sharply by 75.6   per cent to N90 million in November 2020 from N370 million in November 2019.

    On the other hand, banks’ deposits into the regulator’s Standing Deposit Facility ( SDF) grew YoY by 64 per cent to N726.98 billion in November 2020 from N443.63 billion in November 2019.

    Disclosing this its economic report for November 2020, the CBN   said: “Deposit Money Banks (DMBs)   and merchant banks continued to access the standing facilities window to square liquidity positions in November 2020.

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    “The trend at the CBN standing facilities window showed more frequency at the SDF window, compared with the SLF, due to the banking system liquidity surfeit. “Applicable rates for the SLF and SDF stood at 12.5 per cent and 4.5 per cent, respectively.

    “Total request for the SLF granted from November 1-26, 2020 was N15.95 billion, made up of N3.15 billion direct SLF and N12.79 billion Intraday Lending Facilities (ILF) converted to overnight repo. Daily average was N2.66 billion in 6 transaction days from November 1-26, 2020.”

    On SDF, it stated:”Total interest earned was N0.09 billion. Total SDF granted, during the review period, was N726.98 billion with a daily average of N38.26 billion in 19 transaction days from November 1-26, 2020.

    “Daily request ranged from N31.30 billion to N45.10 billion. Cost incurred on SDF in the month stood at N0.12 billion.”

     

    The post Banks’ borrowing from CBN falls 98% to N15bn appeared first on Vanguard News.


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