Enhance deposit placement by 118%
Banks’ borrowings from the Central Financial institution of Nigeria, CBN, fell month-on-month, MoM, by 44 % to N12.16 trillion in April from N21.7 trillion in March.
Evaluation of newest knowledge from the CBN reveals that the 44% drop represents the primary MoM decline in banks borrowing from since January when it elevated by 268.7 % to N3.6 trillion from N976.29 billion in December 2023.
Nonetheless, additional evaluation confirmed that banks’ deposits within the CBN SDF grew MoM by 118.4 % to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to entry liquidity to run their day-to-day enterprise operations whereas the Standing Deposit Facility window (SDF) alternatively, is an in a single day deposit facility that permits banks to lodge extra liquidity (cash) with the CBN and earn curiosity.
The decline in banks’ borrowing from SLF might mirror a rise in banking system liquidity and likewise the choice of the apex financial institution final 12 months to take away the restrict on the remunerable day by day placements by banks on the SDF.
In line with the CBN governor, Mr. Olayemi Cardoso the CBN eliminated the cap on the remunerable SDF to extend exercise within the SDF window and handle liquidity.
