Regulatory Alerts2024-08-26 | FMD/DIR/PUB/CIR/001/016CIRCULAR TO AUTHORISED DEALERS: The Standing Lending Facility to be at 31.75 Percent as Approved at the 296th Meeting of the Monetary Policy Committee (MPC)
The Central Bank of Nigeria has announced that the upper limit of the Standing Lending Facility will be set at 31.75%. Authorised dealers can access the SLF at this rate, while they are also permitted to use the Interbank Lending Facility without cost if repaid on the same day to avoid gridlock in the system. The 5% penalty for not settling ILF within a day will be enforced by converting it to an SLF at 36.75%. Collateral execution, as stated in the approved repo guidelines, has also been reintroduced. This circular takes immediate effect and was signed by Director, Financial Markets Department, Omolara O. Duke (Ph.D.).
Website: www.cbn.gov.ng Email: financialmarkets@cbn.gov.ng Tel: 09 462 36700, 0946236703 CENTRAL BANK OF NIGERIA Corporate Head Office, Central Business District, P.M.B. 0187, Garki, Abuja - F.C.T
Fmd/Dir/Pub/Cir/001/016
August 26, 2024 CIRCULARS TO AUTHORISED DEALERS THE STANDING LENDING FACILITY TO BE AT 31.75 PER CENT AS APPROVED AT THE 296™ MEETING OF THE MONETARY POLICY COMMITTEE (MPC) The Monetary Policy Committee (MPC) adjusted the upper corridor of the standing facilities to 5.00 per cent from 1.00 per cent around the MPR, at its 296th meeting.
Consequently, the suspension of the Standing Lending Facility (SLF) is hereby lifted and Authorised Dealers should send their request for SLF through the Scripless Securities Settlement System (S4) within the operating hours of 5.00pm to 6.30pm.
To this end, Authorised Dealers are: i.
ii.
iii.
iv.
Permitted to access the SLF at 31.75 per cent.
Permitted to access ILF to avoid system gridlock at no cost if repaid the same day.
The 5.00 per cent penalty (as stated in the S4 business rules) is retained, for participants that do not settle their ILF, which the system will convert to SLF at 36.75 per cent.
Collateral execution (the rediscounting of instruments pledged by participants at the penal rate by CBN) is reintroduced as stipulated in the approved repo guidelines.
The circular takes immediate effect.
Signed:
Omolara O. Duke (Ph.D.) Director, Financial Markets Department