The Central Bank of Nigeria (CBN) has said that the adjusted Standing Lending Facility (SLF) and Standing Deposit Facility (SDF) for authorised banks have become effective from today (August 26).
At the 296th Monetary Policy Committee (MPC) meeting, the SLF was adjusted to 31.75 percent while the SDF was adjusted to 25.75 percent.
“Pursuant to sections 12 and 30 of the CBN Act 2007, the Monetary Policy Committee (MPC), at its 296th meeting adjusted the Asymmetric Corridor to +500/-100bps from +100/-300bps around the Monetary Policy Rate (MPR),” the report stated.
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In a circular dated August 26, 2024, and signed by Omolara Duke, director financial markets department, the SDF for commercial and merchant banks at 25.75 percent for deposits up to N3 billion.
The operational SDF for payment service banks was slated at 25.75 percent for deposits up to N1.5 billion and 19 percent for excess deposits above N1.5 billion.
Standing facilities (deposit and lending) are instruments of liquidity management, according to the CBN. They serve as avenues to invest surplus funds overnight and to square up whenever the system is short at the end of each business day.
Standing Lending Facility (SLF), is the process of banks lending from the CBN, which is one way the central bank makes liquidity available to the banks.
On the other hand, the Standing Deposit Facility refers to deposits banks make to the CBN.
