curator
Administrator
Indications have emerged that banks in the country are facing severe liquidity crisis following the Central Bank of Nigeria’s decision to impose 50 per cent cash reserve requirement (CRR) on public sector deposits.
Latest findings showed that banks, discount houses and other financial institutions have embarked on a massive borrowing spree, increasing their borrowing from the CBN by a whopping 210 per cent in one month in order to manage the liquidity crisis.
Data from the CBN indicate that deposit money banks (DMBs), merchant banks and discount houses more than tripled the amount borrowed) in August alone to meet their financial obligations.
According to the CBN Economic Report for August 2013, banks increased their borrowing from the CBN Standing Lending Facility (SLF) from N793.08 billion in July to a whopping N2.465 trillion in August alone, representing an increase of 210.8 per cent.
Leadership Newspaper :
http://leadership.ng/news/231013/liquidity-crisis-hits-banks-borrow-n246trn-cbn
Latest findings showed that banks, discount houses and other financial institutions have embarked on a massive borrowing spree, increasing their borrowing from the CBN by a whopping 210 per cent in one month in order to manage the liquidity crisis.
Data from the CBN indicate that deposit money banks (DMBs), merchant banks and discount houses more than tripled the amount borrowed) in August alone to meet their financial obligations.
According to the CBN Economic Report for August 2013, banks increased their borrowing from the CBN Standing Lending Facility (SLF) from N793.08 billion in July to a whopping N2.465 trillion in August alone, representing an increase of 210.8 per cent.
Leadership Newspaper :
http://leadership.ng/news/231013/liquidity-crisis-hits-banks-borrow-n246trn-cbn
