CBN lifts suspension on Standing Lending facility

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The Central Bank of Nigeria (CBN) has lifted the suspension on the Standing Lending Facility (SLF), allowing banks to borrow at an interest rate of 31.75% to manage short-term liquidity needs.

The move follows decisions by the Monetary Policy Committee (MPC) to adjust monetary policies in response to inflation.

The CBN also introduced new guidelines, including a free Intraday Liquidity Facility (ILF) if funds are repaid within the same day, and a 5% penalty for late settlements, which will be converted to SLF at a higher rate of 36.75%. Banks are required to submit SLF requests within a specific time frame.

Additionally, the CBN has adjusted the Standing Deposit Facility (SDF) rate to 25.75% for deposits, with varying rates for different types of banks.

These changes aim to balance economic growth with inflation control, leading to tighter liquidity conditions in the banking sector.

THE NATION

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