Stats: 3,192,262 members, 7,947,274 topics. Date: Thursday, 12 September 2024 at 03:52 PM |
Nairaland Forum / Nairaland / General / Investment / Interbank Rates At Three-year Low On New CBN Rules (619 Views)
Beware Of Wonder Banks, CBN Warns / CBN Bans Rice, Cement Importers, Others From Forex Market / Results On Comparing Fixed Deposit Interest Rates Between First Bank And Gtbank (2) (3) (4)
(1) (Reply)
Interbank Rates At Three-year Low On New CBN Rules by Adesiji77: 12:44pm On Nov 08, 2014 |
Interbank lending rates slipped to a three-year low after the central bank announced a restriction on the volume of idle cash that banks can place with it, traders said. The Central Bank of Nigeria (CBN) on Thursday restricted lenders and discount houses from depositing more than 7.5 billion naira ($45.25 million) each, increasing interbank naira liquidity. Interbank lending rates closed around 8 percent across the board on Friday, 2.2 percentage points lower than last week’s 10.2 percent. Dealers said many banks were taken aback by the new limit on central bank deposits and were willing to place funds with borrowers at whatever rate. “Many banks are left with idle funds that should ordinarily be attracting some interest at the central bank, but now are floating with zero interest,” one dealer said The cash balance banks held at the central bank opened around 500 billion naira on Friday. The new restrictions meant more than 60 percent of those funds were not earning interest. Any amount deposited above the stipulated 7.5 billion naira by each bank will not attract any interest payment, the new rule specified. The regulator currently pays on 10 percent of cash deposited with it by banks. Both Open Buy Back (OBB) and overnight placement with other banks were traded around 8 percent each on Friday, lower than 10.15 percent and 10.25 percent for OBB and overnight last week. Dealers said interbank lending rates are expected to rise back to around 10 percent next week as banks adjust their lending to the new CBN rule. Reuters BusinessDay |
(1) (Reply)
Trade Random75 Index Without Loss / Thinking Of Relocation...think Noble / Urgent..Angel Investor Needed On A Creative Pharmaceuticals Importation
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 10 |