Central Bank of Nigeria economic report for November 2019 has
shown that Commercial and merchant banks have accessed N662.44 billion loans
from the apex bank to control their liquidity and maintain stability.
The report also showed that the loans, which came through
the Standing Lending Facilities (SLF), were meant to allow the lenders raise up
their positions.
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Daily average was N41.40 billion from November 1 to 26.
Daily request ranged from N0.48 billion to N126.74 billion. Total interest
earned was N0.37 billion.
The SLF is an overnight CBN credit available on banking days
between 2 pm and 3.30 pm, with settlement done on same day value. Funds were
sourced mainly from time, savings and foreign currency deposits, as well as
accretion to unclassified assets.
The funds were used, largely, to extend credit to the
private sector and payment of claims on demand deposit. The rates for Standing
Deposit Facilities (SDF) and SLF remained at nine and 16 per cent,
respectively.
The report said the total SLF granted, during the review
period, was N662.44 billion (made up of N490.29 billion direct SLF and N172.15
billion Intraday Lending Facilities (ILF) converted to overnight repurchase
agreement.
According to the report, the trend at the CBN standing
facilities window showed a decline at the SLF window, as against the increased
patronage at the SDF window. Applicable rates for the SLF and SDF remained at
15.50 and 8.50 per cent.
The total SDF granted during the review period was N443.63
billion with a daily average of N26.09 billion
during the transaction days. Daily request ranged from N6.30 billion to
N42.75 billion. Cost incurred on SDF stood at N0.16 billion.
Further analysis of the report showed that total assets and
liabilities of commercial banks amounted to N41,425.1 billion as at last
October, showing 4.6 per cent increase, compared with the level at the end of the
preceding month.
Funds were sourced, mainly, from increase in unclassified
liabilities, and the mobilisation of time, savings and foreign currency
deposits. The funds were used, mainly, to acquire unclassified assets, foreign
assets and to boost reserves.
Also, commercial banks’ credit to the domestic economy rose
by 0.6 per cent to N22,261.0 billion by October, last year, compared with the
level at the end of the preceding month. The development was attributed to the
rise in its claims on the private sector.
Total specified liquid assets of banks stood at N14.2 trillion
at last October, representing 59.3 per cent of their total current liabilities.
At that level, the liquidity ratio was 0.9 percentage point
lower than the level at the end of the preceding month, and was 29.30
percentage points above the stipulated minimum liquidity ratio of 30 per cent.
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