Deposit taking and lending rate of deposit money banks (DMBs) in the month of March 2013 inched up slightly, compared with the rates reported in the preceding month, Financial Markets Dealers Association (FMDA), has said.
The Financial and Economic Report of FMDA for the month of March showed that savings figures averaged 2.0846 percent in March compared with 2.0513 percent in February 2013, while other tenured funds ranged between 4.2917 percent and 9.0893 percent for overnight to 364 days money.
For the lending rate, prime structured loan and normal structured loan stood at monthly average of 18.0625 percent and 22.1876 percent, respectively, in March, as against average of 18.2031 percent and 22.2188 percent, respectively in February.
Rates moved up marginally in response to need for deposit mobilisation and slight uptick in loans administration cost.
According to the FMDA report, the interbank naira market experienced steady liquidity boost, which ensure rates stabilised below the Monetary Policy Rate (MPR) of 12 percent for active tenors in the period, while the monetary authority became more strategic in its liquidity management drive.
The report further stated that robust liquidity levels in excess of N320 billion in daily net opening cash balances of deposit money banks ensure rates closed the first week at 10.24 percent, 10.59 percent and 11.04 percent for call, 7 days and 30 days, respectively, despite net outflows of N64.63 billion from treasury bills and N59.95 billion WDAS debit.
Rates inched up slightly when compared with the previous week to close the second week at 10.33 percent, 10.63 percent and 11.04 percent for call, 7 days and 30 days, respectively, following moderation in liquidity levels as outflows via N56.07 billion foreign exchange purchases at WDAS window, N60 billion NNPC withdrawal and N70 billion bond purchase outweighed net inflows of N20.12 billion from Open Market Operation (OMO) bills.
Cost of funds further tilted northward to 10.75 percent, 11.13 percent and 11.54 percent for call, 7 days and 30 days, respectively, in the third week following strategic liquidity mop-up through N437.63 billion special OMO bills and N106.74 billion Primary Market Auction (PMA) sales with N108.67 billion WDAS debit, as net opening cash balance of deposit money banks peaked at N693.78 billion on inflows from N283.23 billion Federation Accounts Allocation Committee (FAAC) fund disbursement and mature treasury bill repayments of N354.61billion.
NIBOR closed the month slightly lower in the fourth week at 10.29 percent, 10.54 percent, and 10.92 percent for call, 7 days and 30 days, respectively, as liquidity inflows from N354.72 billion mature treasury bills minimised the effects of outflows via N308.32 billion treasury bills sales and WDAS debits of N89.81 billion.
On monthly average, rates depressed by 1.53 percent, 1.55 percent and 1.65 percent for call, 7 days and 30 days, respectively, in the month under review compared with the average rates of the previous month, arising from the persisted liquidity overhang.
In January 2013, the deposit taking and lending rate of banks also inched up slightly compared with the rates reported in the preceding month. Savings figures averaged 2.0434 percent, while other tenured funds ranged between 3.5395 percent and 9.0410 percent for overnight to 364 days money.
For the lending rates, prime structured loan and normal structured loan stood at monthly average of 18.0625 percent and 22.1876 percent, respectively, in January. Rates gravitate around previous values as key policy drivers remain unchanged.
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HOPE MOSES-ASHIKE
