Nigerian Deposit Money Banks are parking record amounts of excess cash at the Central Bank of Nigeria (CBN) deposit window while lending to the economy continues to stutter, even after the recent cut in interest rates.
Data from the CBN shows that banks’ Standing Deposit Facility (SDF) rose to an all-time high of N5.38 trillion on Monday, driven by excess liquidity from Federation Account Allocation Committee (FAAC) disbursements and Open Market Operation (OMO) repayments.
The SDF is a monetary policy tool that allows banks and other depo
