Banks’ borrowing from CBN hits N4.4tr in 3 months

Nigeria’s (CBN) discount window, known as the Standing Lending Facility (SLF), has increased to N4.4trn.

Banks regularly access the CBN’s Standard Lending Facility (SLF) to borrow funds, subject to some eligibility requirements, to address their short-term liquidity gap. On the other hand, lenders also leverage the Standing Deposit Facility (SDF) window to deposit excess cash.

Data obtained from CBN shows that from June to August, the total SLF stood at N4.44 trillion, with June accounting for over 43.3 per cent of the amount accessed in the period.

Read also: Banks’ borrowings from CBN hit N595.34bn in two months

The amount scaled down from N1.93 trillion in June to N1.46 trillion in July. It dropped further to 1.06 trillion last month.

In May, the SLF stood at N953.6 billion, only for the figure to have doubled in June.

Meanwhile, commercial banks’ credit to the private sector as at the end of July was N39.87 trillion in July.

And loans extended to the government recorded 45 per cent growth in the seven months, hitting N20.09 trillion in July 2022.

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