Deposit Money Banks (DMBs) in the country borrowed the sum of N1.4 trillion from the Central Bank of Nigeria (CBN) through the Standing Lending Facility (SLF) window in July this year, the apex bank has disclosed.

The CBN stated this in its Economic Report for July 2019 released at the weekend, adding that it granted total Standing Deposit Facility (SDF) of N1.2 trillion to DMBs during the same period.

While the SLF is a window through which DMBs borrow funds from the CBN to enable them to meet their short-term cash needs, the SDF provides a window for the lenders to place their surplus cash with the regulator with interest.

According to the banking watchdog, DMBs made more visits to its SLF window in July.

It stated: “The trend at the CBN standing facilities window showed more patronage at the Standing Lending Facility (SLF) window. Applicable rates for the SLF and Standing Deposit Facility (SDF) remained at 15.50 per cent and 8.50 per cent, respectively.

“The total SLF granted during the review period was N1,372.95 billion (inclusive of Intra-day Lending Facility (ILF) converted to overnight repo). Daily average was N68.65 billion in the 20 transaction days in July 2019. Total interest earned was N994.80 billion.

“The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

New Telegraph’s analysis of data obtained from the CBN shows that DMBs borrowed N11 trillion from the CBN through the SLF in the first five months of this year.

Specifically, a review of the apex bank’s economic report for Q1 2019 as well as its economic reports for the months of January, February, April and May 2019, indicate that while DMBs borrowed N11.02 trillion through the SLF window, the total SDF granted them by the CBN during the period amounted to N5.7 trillion.

The CBN has not released its economic report for the month of June. However, when figures obtained from its July 2019 economic report are added to those from the reports for the first five months of this year, they show that for the six months under review, DMBs borrowed a total of N12.42 trillion from the banking sector regulator through the SLF while the total SDF granted them during the period amounted to N6.9 trillion.



Analysts point out that the DMBs would continue to be frequent visitors at the SLF window for as long as the CBN continues with its tight monetary policy stance. In fact, with softening oil prices leading to a decline in the nation’s external reserves in recent weeks, the general prediction is that the CBN could adopt further tightening measures as a way of attracting foreign portfolio capital investors.

However, while DMBs’ visits to the SLF window are heading north, there are indications that lenders’ placements at the SDF window are heading south. Indeed, compared with the data in the economic report for May, total SDF granted by the CBN in July declined.

In its May 2019 economic report, the CBN had stated that: “The total SDF granted during the review period was N1,813.90 billion, with a daily average of N100.77 billion in the 18 transaction days. Daily request ranged from N24.75 billion to N144.10 billion. Cost incurred on SDF in the month stood at N0.59 billion.”

In its July report, however, the apex bank disclosed that: “The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

Analysts attribute the drop in SDF placements by DMBs in July partly to the implementation of the CBN’s decision to peg DMBs’ remunerable daily placements at the SDF at a maximum amount of N2 billion and that it would not pay interest on any deposit by a lender that is above the N2 billion.

The decision, along with an earlier CBN directive mandating DMBs to give out a minimum of 60 per cent of their deposits as loans with effect from September 30, 2019 or face sanctions, were part of fresh measures recently unveiled by the regulator to help boost economic growth by unlocking credit, especially to the real sector.

Meanwhile, according to the economic report for July 2019, DMBs’ credit to the domestic economy increased by 0.6 per cent to N21,073.7 billion at end-June 2019, compared with the level at the end of the preceding month.

The report further stated that: “Total assets and liabilities of the banks amounted to N39,623.4 billion at end-June 2019, showing a 0.2 per cent increase, compared with the level at the end of the preceding month.

“Funds were sourced, mainly, from foreign liabilities, mobilisation of time, savings and foreign currency deposits and reduction in claims on Central Bank. The funds were used mainly, to acquire foreign assets, shore up capital accounts and pay off demand deposits.”

https://www.newtelegraphng.com/2019/09/banks-borrowed-n1-4trn-from-cbn-in-july/

really in niniola's voice

Well CBN is using one of it tools to regulate cash in circulation to avoid inflation... Nothing new here

Abeg na them sabi, when I'm not the one to pay it back

Jordan97:
Buhari is doing well

Are you being sarcastic

anonimi:


Are you being sarcastic

are you saying buhari is not doing well?

youn yonrich nigga

driand:
are you saying buhari is not doing well?

See evidence below of his performance.

www.nairaland.com/attachments/8331014_bubumakesinvestorsfleenigeriacbn_jpeg8c024ba56fba5fb7a560fecb226f7df9



https://www.youtube.com/watch?v=YmG_dYY7YRA

Islie:
… Despite low oil price under-recovery rises by N190bn in two months


Nigeria’s fuel subsidy payments shot up by 1,174 per cent in the wake of the 2019 general elections, as the Nigerian National petroleum Corporation, NNPC, disclosed that it paid N206.585 billion as under recovery in January and February 2019, an increase of N190.37 compared to N16.212 billion recorded in the last two months of 2018.

Nigeria’s 2019 general election took place, February 23 for the presidential and National Assembly elections and March 9 for the governorship and state assemblies’ elections.

Under recovery, also known as fuel subsidy is the cost the NNPC is incurring to subsidise the price of Premium Motor Spirit, PMS, also known as petrol, ensuring that it is sold at fuel retail stations at the regulated price of N145 per litre, even when the real market price is above the regulated price.

Since 2017, the NNPC had been the sole importer of PMS in Nigeria and it deducts cost for under recovery before making remittances to the Federation Account.

Ironically, the naira remained stable within these periods, while the price of crude oil in the international market remained low. In November and December 2018, the price of crude oil in the international market averaged N64.75 per barrel and $57.36 billion per barrel respectively, while in January and February 2019, crude oil price averaged $59.41 per barrel and $63.96 per barrel.

In October 2018, when crude oil hit the 2018 high of $81.03 per barrel, the NNPC recorded under recovery of N40.5 billion.

In its Monthly Financial and Operations Report for May 2019 published yesterday, the NNPC stated that it recorded under recovery of N104.347 billion in January 2019, rising by 682 per cent or N91.011 billion from N13.336 billion recorded in December 2018.

https://www.vanguardngr.com/2019/07/fuel-subsidy-skyrocketed-to-n207bn-days-to-2019-elections-nnpc-report/

Suffix to say we need CBN to furnish us the names of these banks. As it, the report is incomplete and very vague.

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They should give loans to the masses too,If you want to know how useless Nigeria is,go and seek for loans.

CBN could adopt further tightening measures as a way of attracting foreign portfolio capital investors.

timocruzcmbb:
They should give loans to the masses too,If you want to know how useless Nigeria is,go and seek for loans.

Where were you when Osinbajo was giving loans to traders?
Did you not have a PVC to vote for their next level

Ok

anonimi:


Where were you when Osinbajo was giving loans to traders?
Did you not have a PVC to vote for their next level

Dumb comment! in fact very lame comment.

Everything happening in Buhari's regime is so strange.how can we hear of Banks borrowing.that means things are going down.the guy has no certificate he should resign,gat nothing to offer

Ok, am just wondering what's going on in every single sector of economic in this country, now they borrowed that much based on what? Same banks will never give their customers loan via a reasonable interest rate, give them ur proposal to sponsor, after understanding ur proposal via their expects seen all the energy and prospects of ur proposal they will end up stealing your ideas by executing the project without ur permission.
#WhatACountryEveryThingIsOffSideDown.

Truthbites:
Everything happening in Buhari's regime is so strange.how can we hear of Banks borrowing. that means things are going down. the guy has no certificate he should resign,gat nothing to offer

Going down as they went down in the 1980s when the incompetent dullar'd overthrew our democratically elected government in a coup.
Should we not pity those who thought that the lifeless man would change in old age

www.nairaland.com/attachments/2095210_worst_jpeg588f192a23aa02a7b350a8bbe5d18306

anonimi:


Going down as they went down in the 1980s when the incompetent dullar'd overthrew our democratically elected government in a coup.
Should we not pity those who thought that the lifeless man would change in old age

www.nairaland.com/attachments/2095210_worst_jpeg588f192a23aa02a7b350a8bbe5d18306

I just tire...and he has no antidote to the problems!

Overnight borrowings ooh.


Because the CBN squeeze Offshore Sellers trying to get out of the Country..

Banks have capital base with CBN their borrowings can't be headache to CBN except they getting out of hand however CBN has earlier called for recapitalization for more solid banking and economic growth.

anonimi:


Going down as they went down in the 1980s when the incompetent dullar'd overthrew our democratically elected government in a coup.
Should we not pity those who thought that the lifeless man would change in old age

www.nairaland.com/attachments/2095210_worst_jpeg588f192a23aa02a7b350a8bbe5d18306

Wailer, it's not in you. You will be wail of for long. You cannot even read and comprehend the write-up, no wonder you are jobless, sad and depressed.

post=82053175:
CBN could adopt further tightening measures as a way of attracting foreign portfolio capital investors.

Whatever measures or policies you want CBN to adopt will be mere paperwork, with the physical economy run aground by a certain slow president we have and very poor infrastructure.

The money wen bank dey make a day. Dem still dye borrow.

Why the double digit lending to banks?

That’s why the banks are marking up by 700 - 800 basis points & lending to businesses.

Why can’t we adopt the single digit lending like some countries? This will make entrepreneurship interesting.

My opinion though.

Okwyla:
Deposit Money Banks (DMBs) in the country borrowed the sum of N1.4 trillion from the Central Bank of Nigeria (CBN) through the Standing Lending Facility (SLF) window in July this year, the apex bank has disclosed.

The CBN stated this in its Economic Report for July 2019 released at the weekend, adding that it granted total Standing Deposit Facility (SDF) of N1.2 trillion to DMBs during the same period.

While the SLF is a window through which DMBs borrow funds from the CBN to enable them to meet their short-term cash needs, the SDF provides a window for the lenders to place their surplus cash with the regulator with interest.

According to the banking watchdog, DMBs made more visits to its SLF window in July.

It stated: “The trend at the CBN standing facilities window showed more patronage at the Standing Lending Facility (SLF) window. Applicable rates for the SLF and Standing Deposit Facility (SDF) remained at 15.50 per cent and 8.50 per cent, respectively.

“The total SLF granted during the review period was N1,372.95 billion (inclusive of Intra-day Lending Facility (ILF) converted to overnight repo). Daily average was N68.65 billion in the 20 transaction days in July 2019. Total interest earned was N994.80 billion.

“The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

New Telegraph’s analysis of data obtained from the CBN shows that DMBs borrowed N11 trillion from the CBN through the SLF in the first five months of this year.

Specifically, a review of the apex bank’s economic report for Q1 2019 as well as its economic reports for the months of January, February, April and May 2019, indicate that while DMBs borrowed N11.02 trillion through the SLF window, the total SDF granted them by the CBN during the period amounted to N5.7 trillion.

The CBN has not released its economic report for the month of June. However, when figures obtained from its July 2019 economic report are added to those from the reports for the first five months of this year, they show that for the six months under review, DMBs borrowed a total of N12.42 trillion from the banking sector regulator through the SLF while the total SDF granted them during the period amounted to N6.9 trillion.



Analysts point out that the DMBs would continue to be frequent visitors at the SLF window for as long as the CBN continues with its tight monetary policy stance. In fact, with softening oil prices leading to a decline in the nation’s external reserves in recent weeks, the general prediction is that the CBN could adopt further tightening measures as a way of attracting foreign portfolio capital investors.

However, while DMBs’ visits to the SLF window are heading north, there are indications that lenders’ placements at the SDF window are heading south. Indeed, compared with the data in the economic report for May, total SDF granted by the CBN in July declined.

In its May 2019 economic report, the CBN had stated that: “The total SDF granted during the review period was N1,813.90 billion, with a daily average of N100.77 billion in the 18 transaction days. Daily request ranged from N24.75 billion to N144.10 billion. Cost incurred on SDF in the month stood at N0.59 billion.”

In its July report, however, the apex bank disclosed that: “The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

Analysts attribute the drop in SDF placements by DMBs in July partly to the implementation of the CBN’s decision to peg DMBs’ remunerable daily placements at the SDF at a maximum amount of N2 billion and that it would not pay interest on any deposit by a lender that is above the N2 billion.

The decision, along with an earlier CBN directive mandating DMBs to give out a minimum of 60 per cent of their deposits as loans with effect from September 30, 2019 or face sanctions, were part of fresh measures recently unveiled by the regulator to help boost economic growth by unlocking credit, especially to the real sector.

Meanwhile, according to the economic report for July 2019, DMBs’ credit to the domestic economy increased by 0.6 per cent to N21,073.7 billion at end-June 2019, compared with the level at the end of the preceding month.

The report further stated that: “Total assets and liabilities of the banks amounted to N39,623.4 billion at end-June 2019, showing a 0.2 per cent increase, compared with the level at the end of the preceding month.

“Funds were sourced, mainly, from foreign liabilities, mobilisation of time, savings and foreign currency deposits and reduction in claims on Central Bank. The funds were used mainly, to acquire foreign assets, shore up capital accounts and pay off demand deposits.”

https://www.newtelegraphng.com/2019/09/banks-borrowed-n1-4trn-from-cbn-in-july/

NIGERIA IS BECOMING A COUNTRY OF "BORROW" "BORROW"

President Muhammadu Buhari will left office huge debt owed China.

Okwyla:
Deposit Money Banks (DMBs) in the country borrowed the sum of N1.4 trillion from the Central Bank of Nigeria (CBN) through the Standing Lending Facility (SLF) window in July this year, the apex bank has disclosed.

The CBN stated this in its Economic Report for July 2019 released at the weekend, adding that it granted total Standing Deposit Facility (SDF) of N1.2 trillion to DMBs during the same period.

While the SLF is a window through which DMBs borrow funds from the CBN to enable them to meet their short-term cash needs, the SDF provides a window for the lenders to place their surplus cash with the regulator with interest.

According to the banking watchdog, DMBs made more visits to its SLF window in July.

It stated: “The trend at the CBN standing facilities window showed more patronage at the Standing Lending Facility (SLF) window. Applicable rates for the SLF and Standing Deposit Facility (SDF) remained at 15.50 per cent and 8.50 per cent, respectively.

“The total SLF granted during the review period was N1,372.95 billion (inclusive of Intra-day Lending Facility (ILF) converted to overnight repo). Daily average was N68.65 billion in the 20 transaction days in July 2019. Total interest earned was N994.80 billion.

“The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

New Telegraph’s analysis of data obtained from the CBN shows that DMBs borrowed N11 trillion from the CBN through the SLF in the first five months of this year.

Specifically, a review of the apex bank’s economic report for Q1 2019 as well as its economic reports for the months of January, February, April and May 2019, indicate that while DMBs borrowed N11.02 trillion through the SLF window, the total SDF granted them by the CBN during the period amounted to N5.7 trillion.

The CBN has not released its economic report for the month of June. However, when figures obtained from its July 2019 economic report are added to those from the reports for the first five months of this year, they show that for the six months under review, DMBs borrowed a total of N12.42 trillion from the banking sector regulator through the SLF while the total SDF granted them during the period amounted to N6.9 trillion.



Analysts point out that the DMBs would continue to be frequent visitors at the SLF window for as long as the CBN continues with its tight monetary policy stance. In fact, with softening oil prices leading to a decline in the nation’s external reserves in recent weeks, the general prediction is that the CBN could adopt further tightening measures as a way of attracting foreign portfolio capital investors.

However, while DMBs’ visits to the SLF window are heading north, there are indications that lenders’ placements at the SDF window are heading south. Indeed, compared with the data in the economic report for May, total SDF granted by the CBN in July declined.

In its May 2019 economic report, the CBN had stated that: “The total SDF granted during the review period was N1,813.90 billion, with a daily average of N100.77 billion in the 18 transaction days. Daily request ranged from N24.75 billion to N144.10 billion. Cost incurred on SDF in the month stood at N0.59 billion.”

In its July report, however, the apex bank disclosed that: “The total SDF granted during the review period was N1,165.82 billion with a daily average of N1.30 billion in the 19 transaction days. Daily request ranged from N9.00 billion to N154.30 billion. Cost incurred on SDF in the month stood at N0.35 billion.”

Analysts attribute the drop in SDF placements by DMBs in July partly to the implementation of the CBN’s decision to peg DMBs’ remunerable daily placements at the SDF at a maximum amount of N2 billion and that it would not pay interest on any deposit by a lender that is above the N2 billion.

The decision, along with an earlier CBN directive mandating DMBs to give out a minimum of 60 per cent of their deposits as loans with effect from September 30, 2019 or face sanctions, were part of fresh measures recently unveiled by the regulator to help boost economic growth by unlocking credit, especially to the real sector.

Meanwhile, according to the economic report for July 2019, DMBs’ credit to the domestic economy increased by 0.6 per cent to N21,073.7 billion at end-June 2019, compared with the level at the end of the preceding month.

The report further stated that: “Total assets and liabilities of the banks amounted to N39,623.4 billion at end-June 2019, showing a 0.2 per cent increase, compared with the level at the end of the preceding month.

“Funds were sourced, mainly, from foreign liabilities, mobilisation of time, savings and foreign currency deposits and reduction in claims on Central Bank. The funds were used mainly, to acquire foreign assets, shore up capital accounts and pay off demand deposits.”

https://www.newtelegraphng.com/2019/09/banks-borrowed-n1-4trn-from-cbn-in-july/

Buhari has destroyed Nigeria

how is this a news or information, after all what happen the N100bn given to Myetti Allah?

The SLF is more than the SDF and the CBN is still placing restrictions on the SDF?