CBN Loans Banks N2.08 Trillion in Four Months

The Central Bank of Nigeria deepened credit provision to banks across the country in the first four months of the year with N2.08 trillion, according to the latest data from the apex bank.

Deposit Money Banks and merchant banks borrowed a total sum of N1.81 trillion from the central bank in the first quarter of the year. However, in April, they borrowed another N274 billion the apex bank, bringing the total credit to N2.08 trillion in the first four months.

The report also noted that banks across the country continue to access the Standing Facilities Window to square up their positions.

The trend at the CBN standing facilities window showed more frequency at the Standing Lending Facility window, as against the decreased patronage at the Standing Deposit Facility window.

CBN’s first-quarter economic figures showed that applicable rates for the SLF and SDF stood at 15.50 and 8.50 per cent respectively in March.

Total request for the SLF during the first quarter of 2020 was N1.81 trillion, made up of N1.21 trillion direct SLF and N597.96 billion intraday lending facilities converted to overnight repo.

Daily requests ranged from N0.72 billion to N181.63 billion and averaged N40.26 billion in the 45 transaction days in the period.

Total interest earned at 15.50 per cent was N767.13 billion.

The total SDF granted during the review period was N843.09 billion, with a daily average of N14.05 billion in the 60 transaction days in the first quarter of 2020.

Daily requests ranged from N1.57 billion to N47.90 billion, according to CBN.

It said the cost incurred on SDF in the first quarter of 2020 stood at N460 million.