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NIGERIA: Banks’ assets hit N24trn in 2014

The total assets of the 24 banks in the country rose by 4.4 percent to N24.3 trillion in the fourth quarter of last year. On the other hand, the banks increased their lending to the economy by 8.6 per cent to N12.3 trillion. 
 
The Central Bank of Nigeria (CBN) disclosed this in its economic report for the fourth quarter.
The report stated, “Available data indicated that the total assets and liabilities of the deposit money banks (DMBs)  stood at N24,334.7 billion at the end of the fourth quarter of 2013, representing an increase of 4.4 per cent over the level at the end of the preceding quarter
“At N12, 224.8 billion, banks  credit to the domestic economy, rose by 8.6 per cent above the level in the preceding quarter. The development was attributed, largely, to the 346.9 per cent increase in claims on the Federal Government.
“Central Bank’s credit to the banks fell by 1.6 per cent to N229.8 billion at the end of the review quarter, reflecting the decline in overdrafts to banks, while total specified liquid assets of the DMBs stood at N6, 614.79 billion, representing 39.5 per cent of their total current liabilities.
At that level, the liquidity ratio, rose by 1.8 percentage points above the level in the preceding quarter, and was 9.5 percentage points above the stipulated minimum ratio of 30.0 per cent. The loans-to- deposit ratio, at 36.3 per cent, was 2.9 percentage points above the level at the end of the preceding quarter, but was 43.7 percentage points below the prescribed maximum ratio of 80.0 per cent.
“At N15,040.7 billion, aggregate banking system’s credit (net) to the domestic economy, rose by 14.9 per cent at the end of the fourth quarter of 2013, in contrast to the decline of 0.5 and 1.5  per cent at the end of the preceding quarter and the corresponding quarter of 2012, respectively.
The development relative to the preceding quarter was due, largely, to the 54.0 and 1.4 per cent increase in claims on the Federal Government and the private sector, respectively.
Over the level at end-December 2012, aggregate banking system’s credit (net) to the domestic economy, rose by 18.5 per cent, reflecting largely the 40.1 and 9.0 per cent increase in claims on the private sector and the Federal Government.
“Banking system’s credit (net) to the Federal Government, at the end of the review quarter rose by 53.9 per cent to negative N1,468.8 billion, in contrast to the 25.5 and 31.4 per cent decline at the end of the preceding quarter and the corresponding quarter of 2012, respectively.
“At the end of fourth quarter of 2013, banking system’s credit to the private sector rose by 1.4 per cent to N16,509.5 billion, compared with the 3.7 and 2.7 per cent increase in the preceding quarter and the corresponding period of 2012, respectively.
 

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