Commercial and merchant banks got N662bn loans from the Central Bank of Nigeria to control their liquidity and maintain stability.
According to CBN’s Standing Lending Facilities, the daily average loan was N41.40bn while daily requests ranged from N0.48bn to N126.74bn. The total interest earned was N0.37bn.
The SLF is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on the same day value. Funds were sourced mainly from time, savings and foreign currency deposits, as well as accretion to unclassified assets.
The funds were used to extend credit to the private sector and payment of claims on demand deposits. The rates for Standing Deposit Facilities and SLF remain at nine and 16 per cent, respectively.
The report added that the total SLF granted, during the review period, was N662.44bn (made up of N490.29bn direct SLF and N172.15bn Intraday Lending Facilities converted to an overnight repurchase agreement.
According to the report, the trend at the CBN standing facilities window showed a decline at the SLF window, as against the increased patronage at the SDF window. Applicable rates for the SLF and SDF remained at 15.50 and 8.50 per cent.
The total SDF granted during the review period was N443.63bn with a daily average of N26.09bn during the transaction days. Daily requests ranged from N6.30bn to N42.75bn. The cost incurred on SDF stood at N0.16bn.
Further analysis of the report showed that the total assets and liabilities of commercial banks amounted to N41,425.1bn as last October, showing 4.6 per cent increase, compared to the level at the end of the preceding month.
Funds were sourced, mainly, from an increase in unclassified liabilities, and the mobilisation of time, savings and foreign currency deposits. The funds were used, mainly, to acquire unclassified assets, foreign assets and to boost reserves.
Also, commercial banks’ credit to the domestic economy rose by 0.6 per cent to N22,261.0bn by October, last year, compared to the level at the end of the preceding month. The development was attributed to the rise in its claims on the private sector.
Total specified liquid assets of banks stood at N14.2tn last October, representing 59.3 per cent of their total current liabilities.
At that level, the liquidity ratio was 0.9 percentage point lower than the level at the end of the preceding month and was 29.30 percentage points above the stipulated minimum liquidity ratio of 30 per cent.
The loan-to-deposit ratio, at 61.9 per cent, was 0.3 percentage point below the level at the end of the preceding month and was lower than the maximum ratio of 80.0 per cent by 18.10 percentage point.
Also, at N858.92bn, the estimated federally-collected revenue (gross) in November 2019 fell below both the monthly budget estimate of N1,246.07bn and the preceding month’s receipt of N894.09bn by 31.1 per cent and 3.9 per cent.
The decline, relative to the monthly budget estimate, was attributed to a shortfall in both oil and non-oil revenue.
Oil receipts, at N489.08bn or 56.9 per cent of total revenue, was below both the monthly budget of N798.83bn and the preceding month’s receipt of N577.30 by 38.8 per cent and 15.3 per cent.
