Data collated from the Central Bank of Nigeria (CBN) has shown that banks borrowing from CBN in August 2022 dropped by 47 per cent Month-on-Month (MoM) to N2.4 trillion compared with N4.5 trillion in July 2022.
This is as analysts have predicted that with the recent increase in Monetary Policy Rate (MPR), banks would further down the line continue to be conservative in borrowing from CBN.
The CBN lend to banks through the Standing Lending Facility (SLF) at an interest rate of 100 basis points above the 14 per cent Monetary Policy Rate (MPR), it also lends to banks through the Repurchase (Repo) arrangement.
The financial data by CBN revealed that banks’ borrowing through the CBN’s SLF dropped by 27.4 per cent MoM to N1.06trillion in August from N1.46 trillion in July, whilst banks’ borrowing through Repo arrangement also dropped significantly in August by 55.8per cent MoM to N1.35trillion from N3.07trillion in July.
At the end of July Monetary…
Source: Thisday Newspaper