Banks’ borrowing from CBN rises through 72% to N6.2 trn in Q3’19

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CBN

…As deposits in CBN drop through 12% to N14trn

Through Elizabeth Adegbesan

There are indications that many banks are nonetheless underneath expanding liquidity force because the Central Financial institution of Nigeria’s, CBN,    stated their borrowings from the apex financial institution’s Status Lending Facility, SLF, rose through 72 p.c to N6.2 trillion within the 3rd quarter of 2019 (Q3’19) at the same time as their deposits within the apex financial institution dropped through 12 p.c to N14 trillion all the way through the duration.

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The apex financial institution disclosed this in its  Financial File for Q3’19. The borrowing was once N3.6 trillion in Q2’19.

The document said: “The banks persisted to get entry to the CBN’s Status Amenities to sq. up their positions both through borrowing from the status lending facility (SLF) or depositing their extra liquidity on the status deposit facility (SDF) of the CBN on the finish of each and every industry day.

“Overall request for the Status Lending Facility (SLF), inclusive of direct SLF and Intra-day lending amenities (ILF) that have been transformed to in a single day repo all the way through the evaluation quarter, stood at N6.2 trillion, in comparison with N3.6 trillion within the previous quarter. Day by day reasonable transaction price amounted to N100.05 billion in 62 transaction days, with general passion earned at N4.21 billion, in comparison with the day-to-day reasonable of N62.48 billion in 58 transaction days, with a complete of N2.63 billion, as passion earned on the finish of the previous quarter.

“Overall status deposit facility (SDF) granted all the way through the evaluation duration was once N2.08 trillion, with day-to-day reasonable of N33.08 billion, in comparison with N4.98 trillion, in the second one quarter of 2019. The associated fee incurred on SDF within the evaluation quarter amounted to N0.63 billion, in comparison with N1.67 billion within the previous quarter.”

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On deposits to the CBN, the document said: “Overall deposits on the CBN amounted to N14.08 trillion at end- August 2019, indicating a decline of 12.1 in step with cent underneath the extent at end-June 2019. The autumn was once attributed to 18.four in step with cent, 9.three in step with cent and 5.eight in step with cent decline within the deposits of the economic banks, the government and the non-public sector, respectively.

“Of the whole deposits on the CBN, the stocks of the Federal Govt, banks and personal sector deposits have been 44.three in step with cent, 35.2 in step with cent and 20.Five in step with cent, respectively.”

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