Top bank executives told one of our correspondents that commercial banks and merchant banks continued to access the CBN SLF window to square-up their financial position in 2019. According to financial services executives, banks with more liquidity problems appear to frequent the CBN SLF window than those with less challenges. He said, “The factors that accounted for this is mainly the low level of liquidity of some of the commercial banks in the country. The World Bank had warned that the assets of the commercial banks might deteriorate if the apex bank continued to support undercapitalised banks. The World Bank specifically expressed reservations about the manner in which the CBN extended liquidity support to four undercapitalised banks.

Source: Punch January 12, 2020 01:30 UTC