Commercial Banks Borrow N950bn From CBN In Three Months
Central Bank Of Nigeria
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Commercial Banks Borrow N950bn From CBN In Three Months

Eludoyin Oluwanisola

The Central Bank of Nigeria (CBN) quarterly economic report has disclosed that commercial and merchant banks received a loan of N949.91 billion within the sparse of three months.

According to the report, the banks continued to access the CBN’s standing facilities to square up their positions either by borrowing from the standing lending facility (SLF) or depositing their excess liquidity at the standing deposit facility (SDF) of the CBN at the end of each business day.

“Total request for the Standing Lending Facility (SLF), inclusive of direct SLF (N949.91 billion) and Intra-day lending facilities -ILF (N352.64 billion) that were converted to overnight repo during the review quarter, stood at N1.3 trillion, compared with N6.2 trillion in the preceding quarter.

“The daily average transaction value amounted to N23.26 billion in 56 transaction days, with total interest earned at N767.13 billion, compared with the daily average of N100.05 billion in 62 transaction days, with a total of N4.21 billion, as interest earned at the end of the preceding quarter.

“The total assets and liabilities of commercial banks stood at N40.8 trillion at end-November 2019, representing a 3.2 per cent increase above the level at end-September 2019. The rise in bank’s assets could be linked to CBN’s directive that banks lend at least 65 per cent of their deposits to customers through the Loan to Deposit (LDR) policy.

“The loans-to-deposit ratio, at 62.9 per cent, was 0.7 percentage point higher than the level at end-September 2019, but 17.1 percentage points lower than the prescribed maximum of 80.0 per cent,” the report stated.

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