CBN Loaned 2 Mortgage Banks N38bn to Help More Nigerians Own Houses
- Last year, two mortgage banks FMBN and NMRC benefited from loans from the CBN
- FMBN borrowed N37 billion while NMTC N9 million was advanced to the FMBN according to financial report
- The report showed that around the same amount was lent to the banks in 2021
In 2022 the Central Bank of Nigeria, (CBN) disbursed loans and advances of N37.6 billion to mortgage banks, according to the apex bank's audited financial statement.
The Federal Mortgage Bank of Nigeria, FMBN and the Nigerian Mortgage Refinance Company, NMRC are two of the mortgage banks that have benefited from loans from the CBN.
Source: UGC
Recall that 43 mortgage banks authorised by the Central Bank of Nigeria (CBN) to help Nigerians become landlords were published by the Nigerian Deposit Insurance Corporation (NDIC).
The mortgage bank's main line of business is anticipated to be facilitating the acquisition, remodeling, and building of commercial properties nationwide.
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NMRC borrowed more
The borrowings included in the report's loans and receivables section revealed that NMRC, a corporation that provides public-private mortgage refinancing, borrowed N37 billion while N9 million was advanced to the FMBN according to Punch report.
Further investigation revealed that the same amount was lent to the banks in 2021 even though the bank did not mention if the loan had been repaid.
As of the fiscal year that concluded in December 2022, the CBN reportedly owed JP Morgan and Goldman Sachs a combined $7.5 billion. The top bank listed a $6.3 billion debt for foreign currency forwards as part of its obligation.
In its most recent fiscal year, the bank made a profit after tax of N103.8 billion. According to CBN, it owes $7 billion in securities financing to JP Morgan and $500 million to American financial behemoth Goldman Sachs.
According to the statement, it engaged into a securities lending agreement with Goldman Sachs and JP Morgan as a part of the deal, promising holdings on international assets in exchange for money. The top bank disclosed that Goldman Sachs paid them N0.23 trillion in cash.
BDC Operators Send Important Message to CBN As Naira Records Massive Gain Against US Dollar
To increase the availability of dollars in the nation, the Association of Bureau de Change Operators of Nigeria (ABCON) has requested that the Central Bank of Nigeria sell foreign exchange to them according to Legit.ng report.
Aminu Gwadebe, the president of ABCON, claimed in a phone conversation with Legit.ng that such a move would assist relieve pressure on the naira.
He emphasised that BDCs can significantly aid the CBN's monetary policy and efforts to foster market stability.
Source: Legit.ng
