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| GEJ |
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| Sanusi L. Sanusi |
Deposit and lending rates in the banking industry rose marginally in
February due to the impact of the partial fuel subsidy removal.
The Financial Market Dealers Association (FMDA) monthly economic and
financial report for February, made available to one naija's dailies at the weekend,
showed that deposit and lending in the month under review, rose
slightly across various placement periods in the industry as saving rate
averaged at 2.3335 per cent, as against the 2.3173 per cent in the
previous month.
President Goodluck Jonathan had on January 1, 2012, announced full
removal of fuel subsidy which raised fuel price to about N140 per litre,
as against the previous price of N65 per litre. But the policy was
later relaxed following a nationwide protest and pump price was kept at
N97 per litre.
Analysts at the Financial Derivatives Company Limited (FDC) had predicted that the impact of the partial removal of the fuel subsidy would fully manifest in the market in February.
Analysts at the Financial Derivatives Company Limited (FDC) had predicted that the impact of the partial removal of the fuel subsidy would fully manifest in the market in February.
However, the FMDA report showed that on the lending segment, rates for
the prime structured loan, was stable at a monthly average of 17.9773
per cent, compared with its January position; while the normal
structured loan rose to 20.8095 per cent from 20.7381per cent recorded
in the previous month.
“Rates are expected to moderate around this band the coming months as
the monetary authority met end- January but retain key monetary
indices,” the FMDA report added.
It also revealed that in terms of inflow into the system, the month
recorded N332.53 billion, as against the N256.53 billion in the
preceding month.
“The net withdrawal stood at N228.14 billion relative to N342.08 billion recorded the previous month. The sustenance of the quantitative tightening policy occasioned by the need to ensure price and exchange rate stability resulted in the continued mop-up of liquidity in the system via Primary Market Auction (PMA) and Open Market Operation (OMO).
“The net withdrawal stood at N228.14 billion relative to N342.08 billion recorded the previous month. The sustenance of the quantitative tightening policy occasioned by the need to ensure price and exchange rate stability resulted in the continued mop-up of liquidity in the system via Primary Market Auction (PMA) and Open Market Operation (OMO).
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