Deposit banks have borrowed more than N12.09 trillion from the Central Bank of Nigeria (CBN) in the last six months.
The banks have continued to access the CBN’s window, made up of Standing Lending Facility (SLF) for borrowing and Standing Deposit Facility (SDF) for depositing of excess liquidity.
CBN Governor Godwin Emefiele who is to kick off his second term in office on Tuesday is expected to roll out new initiatives and pursue full implementation of ongoing policies in banking supervision and stability.
He would also roll out robust microfinancing; price stability through inflation management; sustenance of the unconventional policy to support the ailing economy; and foreign exchange management, among others.
Total request for the Standing Lending Facility (SLF) inclusive of intra-day lending facilities (ILF) that was converted to overnight repo during the first quarter (Q1) of 2019 stood at N8.41 trillion, compared with N3.68 trillion in the preceding quarter.
The increased borrowing from the apex bank by commercial banks may not have been unconnected with both seasonal expansion goals of businesses and the general elections in the period under review.