•FAAC allocations, N183bn to sustain excess liquidity
By Babajide Komolafe
BANKS said they will further tighten loan conditions in the third quarter 2018, Q3’18, even as they increase lending to the various segments of the economy.
However, credit to the domestic economy dropped by 6.41 percent to N25.71 trillion in May, driven by decline in credit to the government and to the private sector.
Meanwhile the excess liquidity in the interbank money market will persist this week as inflow from Federation Accounts Allocation Committee, FAAC, and maturing Nigerian Treasury Bills, NTBs, worth N183 billion hit the banking system.
Last week, the market enjoyed inflow of N444.3 billion from matured TBs, which cancelled out the impact of liquidity mop up by the Central Bank of Nigeria, CBN, via N137.4 billion worth of Open Market Operations, OMO, bills. The ensuing upsurge in excess…
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