Deposit Money Banks have cut down borrowings from the Central Bank of Nigeria (CBN). This was revealed in the latest report of CBN for the month of November 2020. This development, the CBN attributes to excess liquidity in the system.
Banks borrowed N15.95bn from the CBN in the Standing Lending Facility window in November; the CBN disclosed this in its latest monthly economic report for November.
The report stated, “Deposit Money Banks and merchant banks continued to access the standing facilities window to square liquidity positions in November 2020.
“The trend at the CBN standing facilities window showed more frequency at the Standing Deposit Facility window, compared with the Standing Lending Facility, due to the banking system liquidity surfeit.
“Applicable rates for the SLF and SDF stood at 12.5 per cent and 4.5 per cent, respectively.
“Total request for the SLF granted from November 1-26, 2020 was N15.95bn, made up of N3.15bn direct SLF and N12.79bn Intraday Lending Facilities converted to overnight repo.”
The report stated that daily average was N2.66bn in six transaction days from November 1-26, 2020.
It stated that the total interest earned was N0.09bn.