Banks earn N12.8bn on deposits with CBN in four months

CBN12 June 2014, Lagos – Banks earned N12.86 billion as interest income on deposits placed with the Central Bank of Nigeria, CBN, from January to April.

This was revealed in the Economic reports of the apex bank for the first quarter of the year and for April.

Banks can borrow from the CBN through its Standing Lending Facility (SLF). They can also place their idle cash (excess liquidity) as deposit with the apex bank through its Standing Deposit Facility.

According to the CBN, from January to April, banks paid N1.72 billion as interest on money borrowed through its SLF, and earned N12.86 billion on deposits placed through its SDF. This resulted to a net interest income of N11.14 billion for banks during the four month period.

The CBN Economic Report for the first quarter stated,
“The total Standing Lending Facility (SLF) granted during the review period was N3, 169.26 billion with a daily average of N51.12 billion in the first quarter of 2014, compared with N1,445.54 billion in the preceding quarter, indicating an increase of 119.2 per cent. Interest paid on SLF in the first quarter of 2014 stood at N1.70 billion, compared with N0.87 billion in the preceding quarter.

“Total standing deposit facilities (SDF) granted during the review period was N24, 037.26 billion with daily average of N387.7 billion, compared with N18, 088.37 billion granted in the fourth quarter of 2013.
*Babajide Komolafe-Vanguard

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