The Central Bank of Nigeria has said it will penalise Deposit Money Banks that have liquidity challenges by ways of temporary suspension from its lending window.
In a circular issued on Wednesday, the apex bank announced a change in its rules of engagement with the banks, spelling out new rules regarding how financial institutions could borrow cash from fellow banks or the CBN to cover their temporary shortfalls or meet their obligations. The regulator declared that any commercial bank that failed to comply with the new directives would be suspended from its window for eight weeks