Read Time:2 Minute, 11 Second
The value of credit to the private sector increased marginally year-on-year to N16.452 trillion at the end of November 2013.
The latest Central Bank of Nigeria (CBN) money and credit statistics for November, showed the amount represented a growth by N176 billion, as against the N16.276 trillion it stood the previous month.
Also, currency-in-circulation increased to N1.571 trillion at the end of November, from N1.549 trillion it was in October.
The total amount of deposit money banks' (DMBs') reserves with the central bank however reduced to N2.892 trillion in the month under review, from N2.962 trillion the previous month.
Similarly, currency outside banks during the month under review increased to N1.298 trillion, from N1.249 trillion the preceding month, while demand deposits dipped to N5.080 trillion at the end of November, from N5.211 trillion at the end of October.
Also, the central bank’s money and credit statistics showed that narrow money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank reduced to N6.378 trillion in November, as against the N6.460 trillion it attained in October.
But broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts climbed to N14.734 trillion in the month under review, from N14.530 trillion in October.
While total net foreign assets (NFA) reduced to N8.681 trillion at the end of November, from N8.897 trillion the previous month, Net Domestic Asset (NDA) stood at N6.054 trillion, from N5.633 trillion.
Meanwhile, Standard Chartered Bank's London-based Head of Macro-Economics and Regional Head of Research for Africa, Razia Khan, in a report titled: “The Nigerian Economy− Banking on Nigerian Banks,” noted that the tougher regulations in the banking industry would raise cost.
Some of the policies that were introduced in the sector include limits on fees, minimum deposit rates, phasing out of commission on turnover (CoT), public sector cash reserve requirement hike, possibility of more tightening, increase in AMCON levy and higher risk weights.
Others are the cashless policy, shared service centre and greater adoption of e-channels (including mobile money).
“Nigerian’s banking-sector environment is changing. Deposit rates are expected to become more responsive to changes in monetary policy. Transmission of monetary policy is enhanced. The CBN has a more effective means of ensuring relative forex stability,” she added.