The Economic reports of the Central Bank of Nigeria for the first quarter of the year revealed that banks earned N12.86bn as interest on deposits placed with the Central Bank of Nigeria (CBN) from January to April.
Through the CBN’s Standing Lending Facility (SLF), banks can borrow money, they can also place their idle cash (excess liquidity) as deposits with the apex bank through its Standing Deposit Facility.
The report also disclosed that banks paid N1.72bn as interest money on money borrowed through its SLF and earned N12.86bn on deposits placed through its SDF from January to April. This resulted to a net interest income of N11.14bn for banks during the four month period.
The CBN Economic Report for the first quarter stated, ‘’The total Standing Lending Facility (SLF) granted during the review period was N3,169.26bn with a daily average of N51.12bn in the first quarter of 2014, compared with N1,445.54bn in the preceding quarter, indicating an increase of 119.2%. Interest paid on SLF in the first quarter of 2014 stood at N1.70bn, compared with N0.87bn in the preceding quarter.
‘’Total Standing Deposit Facility (SDF) granted during the review period was N24,037.26bn with daily average of N387.7bn, compared with N18,088.37bn granted in the fourth quarter of 2013’’.