GTB, UBA, First Bank, Others Borrow N35bn Daily From CBN in One Month

• Standing Lending Facility (SLF) declined by 82.15% to N714.10 billion in May 2023
• This was triggered by increased liquidity position in the banking system
• During the period, deposits, however, rose to N450.25 billion with an average daily placement of N21.44 billion

Nigerian banks’ borrowing from the Central Bank of Nigeria’s (CBN) discount window, known as the Standing Lending Facility (SLF), decreased by 82.15% to N714.10 billion in May 2023 from N4.11 trillion the month before.

According to Investopedia, Lending facilities provide financial institutions with access to funds that let them satisfy reserve requirements. Reserve requirements are the amount of cash that financial institutions must have in their vaults

According to the CBN’s monthly economic report, the total amount borrowed equals an average daily request of N35.70 billion, compared to N256.66 billion in April.

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This means GTB, UBA, First Bank and other Deposit Money Banks borrowed less in May 2023 than the previous month.

The decline follows an improvement in banking system liquidity caused by injections made through the Federation Account Allocation.

Federation Account Allocation Committee (FAAC) for the previous month stood at N655.93 billion. In addition, the bNon-Tariff Barriers (NTBs) and CBN bills maturities were valued at N324.43 billion and N85.00 billion, respectively.

Bank’s deposits rose in May

In contrast, bank deposits to the CBN rose to N450.25 billion with an average daily placement of N21.44 billion. This is up from N224.29 billion, with an average daily placement of N14.02 billion the month before.

Notably, the policy rate was raised by 50 basis points to 18.50% in May. This resulted in an increase in the applicable rates for the standing deposit facility and standing lending facility of 11.50% and 19.50%, respectively.

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Access Leads, UBA 3rd: Top Nigerian Banks With Highest Loan Amounts to Customers in 2023

Nigerian banks listed on the Nigerian Exchange have significantly increased their lending to customers during the first half of 2023, Legit.ng reported.

According to data obtained by Legit.ng, eleven banks, as of the end of June 2023, have disbursed N26.83 trillion to their customers.

Analysis by Legit.ng shows that Access Bank, First Bank, and United Bank for Africa (UBA) gave out the highest loans and advances among the banks surveyed.

Source: Legit.ng