Home Loan Reviews Banks’ Borrowing From CBN Increased To N737.05 Billion In May 2022

Banks’ Borrowing From CBN Increased To N737.05 Billion In May 2022

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Banks’ Borrowing From CBN Increased To N737.05 Billion In May 2022

Nigerian banks’ borrowings from the Central Bank of Nigeria’s Standing Lending Facility (SLF) increased to N737.05 billion in May 2022, indicative of a N124.62 billion uptick. This is according to the CBN’s latest monthly economic report .

The  CBN Standing Lending Facility (SLF) activities increased by 20.4% to N737.05 billion in May 2022 compared  to N612.43 billion at end-April 2022.

The report also noted that consumer credit outstanding grew by 0.8% to N2,344.10 billion at end-May, from N2,325.97 billion in the preceding month.

The apex bank said “the total standing lending facility increased considerably by 20.4% to N737.05 billion relative to N612.43 billion at end-April 2022. Similarly, relative to the preceding month, the total standing deposit facility increased slightly by 0.2 per cent to N321.23 billion from N320.55 billion.”

Banks’ Borrowing From CBN Increased To N737.05 Billion In May 2022

“At the open buyback (OBB) segment, as the rate increased by 190 basis points to 9.39 per cent, the value of transactions declined to N213.75 billion from N228.42 billion in the preceding month. The average daily number of deals in the OBB segment fell to 64 from 75 deals in the preceding period,” the bank added.

The CBN  noted that Consumer Credit outstanding grew by 0.8% to N2,344.10 billion at end-May, from N2,325.97 billion in the preceding month.

The bank said, “the sustained increase in consumer credit reflected a growth of new financial product offerings and the effectiveness of the bank’s various policies to encourage credit expansion. By disaggregation, retail loans recorded a sizable growth of 13.2%, to N554.83 billion from N489.97 billion at end-April, while personal loans decreased by 2.5% to N1,789.26 billion relative to N1,835.99 billion in the preceding month.”