Borrowings From Banks Increased By 79 Percent To N269.6bn

Cat:

Related stories

U.S. Remittance Tax Casts Shadow Over African Economies

By Sonny Iroche A new bill passed by the U.S....

Akwa-Ibom Commissioner Defies Gov Umo Eno, Resigns, Says I Can’t Join Gov In APC

By Kolawole Ojebisi The commissioner for special duties and Ibom...

Trump Vs Musk: JD Vance Declares Support For US President Amid Online Row

By Kolawole Ojebisi US Vice President J.D. Vance has weighed...

Exclusive: Inside Details Of Sanwo-Olu’s Alleged Strained Ties With Tinubu

How Lagos Gov's Attendance of Achimugu’s 50th Birthday...

Revealed! The most beautiful city in Africa

Europe is home to several famous mega-cities, from London...

By Ken Afor

At the end of September 2023, bank borrowings from the Central Bank of Nigeria (CBN) Standing Lending Facility (SLF) increased year over year (YoY) by 79% to N269.6 billion from N150 billion at the end of September 2022.

Bank borrowing from the apex bank stood at N558.5 billion at the end of the first quarter of 2023 (Q1’23), but fell sharply QoQ by 90% to N55.3 billion at the end of the second quarter, Q2’23, reflecting an improvement in financial system liquidity during the period.

These quarter-on-quarter (QoQ) details of SLF were found in the CBN Financial data covering January to September 2023.

However, banks’ borrowing from SLF increased by a quantum leap of 387 percent to N269.6 billion in the third quarter of 23.

Despite the change, the apex bank’s Monetary Policy Committee, MPC, meeting communiqué in July 2023 stated: “In the banking system, Financial Soundness Indicators (FSIs) remained stable and strong.

“The Capital Adequacy Ratio (CAR) stood at 11.2 per cent, Non-Performing Loans (NPLs) ratio of 4.1 per cent and Liquidity Ratio (LR) of 48.4 per cent, as at end June 2023.”

The increase in banks’ SLF borrowings YoY is due to increased borrowing from both the public and private sectors.

The credit that banks extended to the government increased month over month (MoM) by 0.62 percent from N32.5 trillion in August to N32.3 trillion in July, according to the CBN Money and Credit Statistics data for August 2023.

Additionally, the data revealed that bank credit to the private sector increased MoM by 11% to N54.7 trillion from N54.1 trillion.

As a result, the MoM increase in net domestic credit from N86.5 trillion in July to N87.3 trillion in August was 0 point 92 percent.

The financial data also revealed that bank deposits in the apex bank’s Standing Deposit Facility, or SDF, increased YoY by 68 percent to N40.8 billion as of September ending 2023 from N12.7 billion as of September 2022’s end.

Bank deposits in the CBN SDF were N11 points 2 billion as of Q1’23, according to a QoQ analysis. The amount increased by 256 percent to N39.9 billion as of Q2’23’s end and by 21% to N40.7 billion as of Q3 2023 end.

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
U.S. Remittance Tax Casts Shadow Over African EconomiesAkwa-Ibom Commissioner Defies Gov Umo Eno, Resigns, Says I Can't Join Gov In APCTrump Vs Musk: JD Vance Declares Support For US President Amid Online RowExclusive: Inside Details Of Sanwo-Olu’s Alleged Strained Ties With TinubuRevealed! The most beautiful city in AfricaElon Musk’s Fortune Plummets By $34 Billion As Feud with Trump EscalatesGov. Umo Eno: Why I Dumped PDP For APC[Video] Akwa Ibom: Gov Umo Eno Officially Defects to APC in Major Political ShiftOtedola Hails Dangote's Refinery As "Eighth Wonder Of The Modern Era"Tears as Mohammed Uwais, ex- Chief Justice of Nigeria, Dies at 89Trump Slams Musk in Explosive Fallout Over Policy ClashNo Untouchables, I'll 'Touch' Abuja Wealthy And Heavens Won't Fall -- Wike BoastsTears As Nigeria's Ex-Ambassador To US, Jubril Aminu, Dies At 85"Why Wike's Politics Should Be Studied At Universities," Says Ooni of IfeUsing FOI Act As Blackmail tool Not Activism But Sabotage -- NEITI Warns
X whatsapp