Regulatory Alerts2024-08-26 | FMD/DIR/PUB/CIR/001/017CIRCULAR TO AUTHORISED DEALERS: Operationalization of the Standing Deposit Facility (SDF) Asymmetric Corridor
The Central Bank of Nigeria (CBN) has adjusted the Asymmetric Corridor to +500/-100bps from +100/-300bps around the Monetary Policy Rate (MPR). This leads to a Standing Lending Facility rate of 31.75% and a new Standing Deposit Facility (SDF) rate of 25.75%. The SDF adjustments apply differently for Commercial & Merchant Banks, with deposit rates at 25.75% up to N3 billion and 19.00% for excess deposits above that amount. For Payment Service Banks, the deposit rate is also 25.75% up to N1.5 billion, while excess deposits above that are charged 19.00%. The new circular takes immediate effect.
Website: www.cbn.gov.ng Email: financialmarkets@cbn.go 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/PUB/CIR/001/017 August 26, 2024 CIRCULAR TO AUTHORISED DEALERS OPERATIONALIZATION OF THE STANDING DEPOSIT FACILITY (SDF) ASYMMETRIC CORRIDOR 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 Standing Lending Facility was adjusted to 31.75% while the Standing Deposit Facility to 25.75%. The adjustment of the SDF will be operationalized as follows: A. Commercial and Merchant Banks 1. 25.75% for deposit up to N3.00 billion 2. 19.00% for excess deposits above the initial N3.00 billion B. Payment Service Banks 1. 25.75% for deposit up to ₦1.50 billion 2. 19.00% for excess deposits above the initial N1.50 billion The circular takes immediate effect. Signed: Omolara O. Duke (Ph.D.) Director, Financial Markets Department