2 August 2012

Nigeria: CBN Revises Guidelines On Lending Window

Lagos — The Central Bank of Nigeria (CBN) yesterday said any deposit money bank and discount house that obtains funds from any of its lending window would no longer be allowed to simultaneously place funds in the interbank market.

The apex regulatory body in a circular issued to the banks and discount houses in the country by its director of banking supervision and signed by A.O Idris, said deposit money banks and discount houses that also place funds in the interbank market would not also be allowed to concurrently access the window.

Titled revised guideline for accessing CBN lending window and Repo transactions, CBN warned that any institution that contravenes any provision of the circular would be suspended from its money market window while the institution shall forfeit the profits it would have made on the transaction.

The CBN further affirmed that the circular takes immediate effect and supersedes all others relating to the subject.

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