The amount of cash borrowed by banks from the Central bank of Nigeria, CBN’s Standing Lending Facility (SLF) on a Month-on-Month (MoM) basis has dropped by 14 per cent from ₦528.15 billion in January 2023 to ₦453.7 billion in February 2023.
The SLF is a Monetary Policy Rate (MPR) at which Deposit Money Banks (DMBs) and discount houses can borrow money from the apex bank at a pre-specified rate.
There is also the Standard Deposit Facility (SDF) which is a lower corridor of the MPR at which DMBs and discount houses can deposit their money overnight with the CBN for an interest rate.
Further checks from the CBN’s Financial Data for January and February 2023, also showed that deposits made by banks in the SDF witnessed a 14 per cent increase from ₦584.79 billion in January 2023 to ₦668.86 billion in February 2023.