Banks’ Assets, Liabilities Hit N38.4trn
The total assets and liabilities of banks stood at N38.4trn at end-February 2019, representing 3.2 per cent increase above the level at end-December 2018.
The total assets and liabilities of commercial banks stood at N37.14tn at the end of November 2018.
According to the figures obtained from the Central Bank of Nigeria’s first quarter report of 2019, the funds were sourced, largely, from foreign liabilities; draw down on reserves and acquisition of credit from the CBN.
The funds were used, mainly, for payment of demand deposits, and settlement of claims on the CBN and the Federal Government.
At N20.93tn, banks’ credit to the domestic economy, at end-February 2019 showed an increase of 1.3 per cent, compared with the level at end-December 2018.
The development reflected the 1.8 per cent rise in claims on the private sector in the review period.
Total specified liquid assets of the banks was N13.266tn at end-March 2019, representing 59.5 per cent of the total current liabilities.
At that level, the liquidity ratio was 2.2 percentage points below the level at end-December 2018, but 29.50 percentage points above the stipulated minimum ratio of 30.0 per cent.
The loans-to-deposit ratio, at 60.04 per cent, was 0.13 percentage point and 19.96 percentage points lower than the level at end-December 2018 and the prescribed maximum of 80.0 per cent, respectively.
On its monetary and credit developments report, the CBN said it loosened its monetary policy stance in the first quarter of 2019, as the Monetary Policy Rate was adjusted downward by 50 basis points to 13.50 per cent from 14.00 per cent.
The key monetary aggregate trended upward at end February 2019.
Over the level at end-December 2018, broad money supply (M3) grew by 4.3 per cent to N34.798tn at end-February 2019, compared with the growth of 16.4 per cent and 3.4 per cent at end-December 2018 and the corresponding period of 2018, respectively.
The development reflected the respective growth of 10.7 per cent and 1.0 per cent in domestic credit (net) and other assets (net) of the banking system, which more than offset the 7.5 per cent decline in net foreign assets.
Narrow money supply (M1) fell by 6.2 per cent to N11,028.86 in February 2019, but contrasted with the growth of 5.2 per cent at end-December 2018.
Relative to the level at the end of the corresponding period of 2018, narrow money supply (M1), declined by 2.9 per cent.
The fall reflected the 3.8 per cent and 6.6 per cent decline in currency outside banks and demand deposits, respectively.
Quasi-money grew by 1.2 per cent at end-February 2019, compared with the growth of 18.1 per cent and 2.5 per cent at end-December 2018 and the corresponding period of 2018, respectively.
The development was attributed to the rise in time and savings deposits of banks.