Regulatory Alerts2012-07-27 | BSD/DIR/GEN/LWR/05/047Revised Guideline for Accessing CBN Lending Windows and Repo Transactions
The Central Bank of Nigeria issues a circular to all banks and discount houses, outlining revised guidelines for accessing lending windows and repo transactions. Banks are not allowed to simultaneously place funds in the inter-bank market if they obtain funds from CBN lending windows. Any institution that breaks these rules will be suspended from CBN's money market window and will forfeit profits from the transaction.
+234-9-46236403 +234-9-46236442 July 26, 2012 BSD/DIR/GEN/LWR/05/047 LETTER TO ALL BANKS AND DISCOUNT HOUSES REVISED GUIDELINE FOR ACCESSING CBN LENDING WINDOWS AND REPO TRANSACTIONS Our circular to all banks referenced BSD/DIR/GEN/CIR/03/016 of July 17 2009 refers. As part of the process of unwinding the extraordinary measures introduced in the wake of the global financial crisis and to ensure the effectiveness of monetary policy, any Deposit Money Bank/Discount House that obtains funds from any CBN lending window is not allowed to simultaneously place funds in the inter-bank market. Deposit Money Banks/Discount Houses that also place funds in the inter-bank market are not allowed to concurrently access the window. Any institution that contravenes any provision of this circular will be suspended from CBN's money market window. In addition, the institution shall forfeit the profits it would have made on the transaction. This circular takes immediate effect and supercedes all others relating to the above subject. A. O. IDRIS FOR: DIRECTOR OF BANKING SUPERVISION