Nigerian Banks Borrow N338.4 Billion From CBN in One Month as Banking Liquidity Improves
- Cash-strapped Nigerian banks have secured about N338.4 billion loan from the CBN to fund their operations
- Data from the CBN show that these banks borrowed the money in the month of January 2022 through the Standing Facilities Window Operations
- According to the data, activities at the standing facilities window during the period showed improved banking system liquidity.
Banks in Nigeria borrowed N338.4 billion from the Central Bank of Nigeria in the month of January, 2022 so as to bridge their funding gap, banking data reveals.
CBN’s monthly data shows that for the Month of January, the banks used the apex bank’s Standing Facilities Window Operation to secure the funds.
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Banks pump more money into circulation
According to the data, activities at the standing facilities window during the period showed improved banking system liquidity.
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The report states:
“Total Standing Lending Facility contracted considerably by 52.4 per cent to N338.4bn from N711.54bn in December 2021, fallout of the improved banking system liquidity in the period.
“In addition, the activity at the inter-bank call segment contributed to the significant decline in SLF.
“Transactions at the Standing Deposit Facility increased by 7.0 per cent to N246.21bn from N230.22bn in the preceding month, further buttressing liquidity condition in the market.”
Experts defend bank borrowing
CBN’s spokesman, Osita Nwanisobi was not available for comments, according to a Punch report.
The Punch reports that industry experts said it is only the banks that are authorised to go to the CBN to withdraw money and not individuals or companies.
What to know about CBN’s new monetary policy rate and how it affects you
Legit.ng has reported that the Central Bank of Nigeria (CBN), Monetary Policy Committee has approved a new Monetary Policy Rate (MPR) of 13 percent.
CBN governor, Godwin Emefiele, disclosed that six out of eleven of the committee members vote to increase the rate.
The Monetary Policy Rate is the rate the Central Banks of different countries are using to control the availability of assets that people can use to convert to cash, BBC Pidgin reports.
Source: Legit.ng
