Excess liquidity in banking sector reduces to less than N100 billion in November – CBN

[ad_1]

The Central Bank of Nigeria has announced that liquidity across the banking sector will fall to less than N100 billion in November 2023.

CBN Governor Olayemi Cardoso disclosed this in his remarks at the 58th Bankers’ Dinner of the Chartered Bankers Association of Nigeria in Lagos on Friday.

He said it recorded debits to ease liquidity in September and October 2023 due to sustained cash reserve requirements.

He said the measures taken by the apex bank had reduced excess liquidity in the banking system and significantly increased overnight bank borrowing rates in line with the monetary policy program.

“Sustained cash reserve requirements eased liquidity in September and October 2023. Liquidity across the banking sector declined significantly to less than N100 billion in November.” A new Liquidity Management Committee has been formed and will meet daily at 8am to assess the liquidity situation and ensure optimal levels. “These measures are already starting to bear fruit, as excess liquidity in the banking system has been significantly reduced and overnight bank borrowing rates have risen to levels consistent with the monetary policy program,” he said.

[ad_2]

Source: dailypost.ng