Kayode Tokede
Following monetary rates tightening by the Central Bank of Nigeria (CBN), which has led to illiquidity in the banking system, banks and merchant banks in Nigeria in just three weeks of June 2024, borrowed an estimated N3.76 trillion from the CBN to meet their daily obligations.
The central bank has continued to tighten its monetary rates amid spiralling inflation and unstable foreign exchange market.
In May 2024, financial institutions borrowed about N10.87 trillion from the CBN.
This brings total borrowing by banks from the central bank in five months of 2024 to N53.7 trillion as against N10.02 trillion in five months of 2023.
The CBN provides a Standing Lending Facility (SLF) window, a short-term lending window for banks and merchant banks, to access liquidity to run their day-to-day business operations.
THISDAY findings showed banks and merchant banks have since the beginning of this year consistently borrowed from the CBN to…
Source: Thisday Newspaper
