Commercial banks use the CBN’s SLF to support their liquidity shortfalls and meet trading obligations on short-term basis. The CBN SLF data showed that banks borrowed N231.92bn, N217.08bn, N228.26bn, N178.28bn, and N164bn, respectively from the central bank between December 4 and 8, 2017. Between December 18 and 22, the banks borrowed N119.836bn, N132.651bn, N163.135bn, N110739bn, and N87.892bn, respectively. During the last week of October and November, the CBN data showed that the banks’ borrowing from the apex bank rose significantly. Banks with liquidity challenges are often seen more on the CBN SLF window than others.

Source: Punch December 26, 2017 00:11 UTC