The Central Bank of Nigeria (CBN) data showed that banks that are cash-strapped borrowed N338.5bn in January to bridge their funding gap.
Naija News reports that the apex bank made this known in a monthly report for January on ‘Standing facilities window operation’.
Figures released by CBN showed that the banks continued to utilise the Standing Lending Facility and Deposit Lending Facility in the sector.
The report said the total Standing Lending Facility contracted considerably by 52.4 per cent to N338.4bn from N711.54bn in December 2021.
It added that transactions at the Standing Deposit Facility increased by 7.0 per cent to N246.21bn from N230.22bn in December 2021.
It reads: “Activities at the standing facility window during the period reflected improved banking system liquidity.
“Total Standing Lending Facility contracted considerably by 52.4 per cent to N338.4bn from N711.54bn in December 2021, fallout of the improved banking system liquidity in the period.
“In addition, the activity at the inter-bank call segment contributed to the significant decline in SLF.
“Transactions at the Standing Deposit Facility increased by 7.0 per cent to N246.21bn from N230.22bn in the preceding month, further buttressing liquidity condition in the market.”