Nigerian banks borrowed the sum of N1.7 trillion from the Central Bank of Nigeria (CBN) in the three months to September 2020, data obtained from the Third Quarter Economic Report showed on Wednesday.
Deposit money banks as well as merchant banks regularly accessed the standing facilities window in the third quarter to square up their positions, the CBN said.
“The trend at the CBN standing facilities window indicated more activities at the Standing Deposit Facility window, compared to the Standing Lending Facility (SLF) window, owing to liquidity surfeit in the banking system.
“Following the Monetary Policy Committee meeting of September 2020, applicable rates for the SLF and SDF changed from 14.5 per cent and 7.5 per cent to 12.5 per cent and 4.5 per cent respectively,” the report said.
In the quarter under review, the total SLF of N1.7 trillion granted by the CBN was made up N866.93 billion direct SLF while the rest N833.53 billion was Intraday Lending Facilities converted to repurchase agreement.
“Daily SLF ranged from N0.13 billion to N384.41 billion and averaged N58.64 billion in 29 transaction days from July 1 to September 25, 2020.
“Total SDF granted, during the review quarter was N1.76 trillion with a daily average of N27.55 billion in 61 transaction days from July 1, 2020 to September 25, 2020.
“Daily request ranged from N0.73bn to N50bn. Cost incurred on SDF in the quarter stood at N0.51bn,” the CBN document said.
The apex bank said it sold bills with tenors ranging from 75 to 362 days in the period for liquidity management purpose.
Total amount offered, allotted and subscribed for in July, August and September came to N640 billion, N1.39 trillion and N625.13 billion respectively.