Deposit money banks and merchant banks borrowed an incredible N3.76 trillion from the Central Bank of Nigeria in the first three weeks of June 2024.
The banks accessed the borrowings through the CBN Lending Facility.
The Standing Lending Facility (SLF) is a short-term credit from which commercial banks can draw when they need short-term withdrawals from their customers.
According to the CBN data, since the start of 2024, Nigerian banks have borrowed at least N57.4 trillion.
This is significantly higher compared to N10.02 trillion in five months of 2023.
Reports say a net SLF indicates liquidity problems in commercial banks due to the central bank’s monetary policy or a symptom of the banks having a lot of non-performing loans.
According to Muda Yusuf, Chief Executive Officer of the Center for Promotion of Private Enterprises (CPPE), the trend reflects the liquidity pressure that certain banks are experiencing.
He mentioned that the facilities are usually temporary.
He said:
Vice President of Highcap Securities, David Adnori, said:
Meanwhile, TimesNow.com.ng earlier reported the arrest one Mr Adeniyi Talabi, a manager at a branch of a major bank in Osogbo, for allegedly embezzling N650 million from 35 bank customers.
Yemisi Opalola, the police command’s spokesperson, said that Talabi committed the fraud by deceiving the victims and siphoning the funds through an illicit method known as proof of funds.
She mentioned that the bank has suspended Talabi as he and his accomplices will face charges in court once the investigation is concluded.
Source: TimesNow.com.ng
