Regulatory Alerts2009-07-30 | BOD/DIR/GEN/CIR/03/027Circular on the Need to Provide Adequate Narration for Inter-bank Transfers Over the CBN Inter-bank Funds Transfer System, CIFTS
This circular addresses all Nigerian Deposit Money Banks (DMBs) and Discount Houses (DHs), directing them to provide comprehensive narration for their inter-bank transactions over the Central Bank of Nigeria's Inter-Bank Funds Transfer System (CIFTS). A detailed rationale for this requirement is to allow the CBN to access accurate data on tenors and rates of inter-bank money market transactions, thereby assisting in implementing its new policy of ensuring liquidity among banks. Failure to comply with these provisions will result in restrictions from obtaining funds from any Central Bank window.
CENTRAL BANK OF NIGERIA Business Central Area District P.M.B. 0187 Garki, Abuja 09-61638445 09-61638455 (Fax) July 30, 2009 REF: BOD/DIR/GEN/CIR/03/027 CIRCULAR TO ALL DEPOSIT MONEY BANKS AND DISCOUNT HOUSES NEED TO PROVIDE ADEQUATE NARRATION FOR INTER-BANK TRANSFERS OVER THE CBN INTER-BANK TRANSFER SYSTEM (CIFTS) All Deposit Money Banks (DMBs) and Discount Houses (DHs) are by this Circular directed to henceforth provide adequate narration for their interbank trading transfers over the CBN Inter-Bank Funds Transfer System (CIFTS) to enable the CBN obtain accurate data on the tenor and rates at which inter-bank money market transactions are effected. Timely and accurate provision of the inter-bank data will assist the CBN in implementing its new policy of guaranteeing the inter-bank lending among banks and discount houses.
To this end, DMBs and DHs are to note that the provision of adequate narrations of their transfers over the CBN CIFTS as well as timely and accurate rendering of returns on their transactions in the inter-bank money market to the CBN will henceforth be a pre-condition for obtaining funds from any of the CBN windows.
CAHEROJE A.S.F. Afoloye Ag. Director, Banking Operations Department