Banks’ Assets Hit N34.6trn In 2017
The total assets and liabilities of deposit money banks in Nigeria rose N34.6 trillion, in 2017. This represented 9.2 percent increase over N31.683 trillion recorded at the end of 2016. The Central Bank of Nigeria (CBN), disclosed this in its Economic Report for fourth quarter 2017 released yesterday.
It stated that noted that the N34.6 recorded by banks in the fourth quarter represented 3.9 percent increase over the level at end of the third quarter of 2017.
According to the apex bank, the funds were sourced, mainly, from reduction of claims on the Federal Government and mobilisation of demand, time, savings and foreign currency deposits. “The funds were used to increase claims on the central bank and the private sector, acquire foreign assets, increase accretion to reserves and reduce unclassified liabilities. “At N20.414 trillion, banks’ credit to the domestic economy, fell by 5.5 per cent, below the level at end-September 2017.
The development reflected the decline in claims on the Federal Government and the private sector in the review quarter. “Total specified liquid assets of the banks stood at N10.094 trillion, representing 54.8 per cent of the total current liabilities. At that level, the liquidity ratio rose by 4.9 percentage points above the level at the end of the preceding quarter and was 24.8 percentage points above the stipulated minimum ratio of 30.0 per cent.
“The loans-to-deposit ratio, at 72.84 per cent, was 6.77 percentage points and 7.16 percentage points below the level at the end of the preceding quarter and the prescribed maximum of 80.0 per cent,” the report stated. CBN futher stated: “The total value of money market assets outstanding at the end of the fourth quarter of 2017 stood at N12.122 trillion, showing an increase of 0.8 per cent, in contrast to 3.0 per cent decline at end-September 2017.”