- Advertisement -spot_img
28.2 C
HomeTop NewsNigerian banks grow credit to economy by 7.61% in Oct ~CBN

Nigerian banks grow credit to economy by 7.61% in Oct ~CBN

- Advertisement -spot_img

By Oludare Mayowa

Nigerian banking industry credit to the domestic economy grew by 7.61 percent in October compared with 7.35 percent in the previous month, according to the Central Bank of Nigeria (CBN) data.

Total credit to the economy stood at N19.54 trillion as of November 13, 2020, compared with
N19.33 trillion at end-August, representing an increase of N290.13 billion.

CBN Governor Godwin Emefiele said the increase in total credit to the economy was driven by the CBN “policy on Loan-to-Deposit Ratio (LDR), supported by the Bank’s interventions in the various
sectors of the economy.”

Emefiele said credit to the economy has increased by as much as N3.97 trillion since the regulatory bank introduced the LDR policy in May 2019.

He said loans were granted mainly to manufacturing (N738 billion), General Commerce (N874 billion), Agric and Forestry (N301 billion), Construction (N291 billion), ICT (N231 billion), just to mention a few.

READ ALSO: Nigeria says new refinery will boost local fuel supply, reduce imports

Emefiele, who spoke on Tuesday while disclosing the decision of the Monetary Policy Committee (MPC) to journalists in Abuja noted the reduction in interest rates on loans by banks last month.

He said the lending rate on loans granted to over one million customers by Deposit Money Banks (DMBs) were at interest rates considerably below 20 percent. “This was an improvement from 76.43 percent as at July 2019.”

The CBN Governor also disclosed that there is an improvement in the Financial Soundness Indicators of banks, which showed the Capital Adequacy Ratio (CAR) of 15.5 percent, Non-Performing Loans (NPLs) of 5.73 percent, and Liquidity Ratio (LR) of 35.6 percent, as at October 2020.

The banking industry aggregate assets rose to N4.02 trillion by the end of September, indicating a growth of N582 billion, or 16.94 percent (year-on-year).

Similarly, aggregate credit grew by N217 billion, or 12.27 percent (year-on-year), to N1.99 trillion during the same period. The Capital Adequacy Ratio for the subsector also exceeded the minimum prudential ratio of 10 percent, Emefiele said.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img