Banks Place N4.6trn with CBN Amidst Weak Loan Appetite
Nigerian deposit money banks (DMBs) stepped up their placements with the Central Bank as the appetite for lending remains tight.
Rising defaults witnessed in the industry have negatively impacted credit creation, with banks staking bets in short-term investment securities to boost income.
System liquidity started the week on a robust footing, Anchoria Securities Limited disclosed, settling at a net long position of ₦4.68 trillion.
The amount represents an uptick when compared with ₦4.32 trillion recorded previously due to additional lodgments at the standing deposit facility.
DMBs lodgments with the Apex Bank printed at ₦4.61 trillion amidst short tenors OMO bills offering at the primary market auction.
The CBN auctioned ₦600.00 billion worth of OMO bills across two maturities: the 8-Day (₦300.00 billion) and 99-day (₦300.00 billion) bills.
Demand was robust at ₦2.04 trillion, largely tilted to the 99-day bill (₦1.98 trillion). Overall, the CBN allotted ₦1.35 trillion across the two tenors. Stop rates cleared at 22.39% for the 8-day bill and 19.48% for the 99-day bill.
Funding rates: the overnight lending rate (O/N) and the open repo rate (OPR) closed at 22.79% and 22.50%, respectively, investment banking firms said in their separate market updates.
Analysts at AIICO Capital stated that, barring any further funding activities, funding cost is likely to moderate slightly amid an expected positive net flow of ₦520 billion from OMO maturity and settlement. NNPC Declares N5.76trn Profit in 2025
