To Get Personalised contents and be able to add items to your favourites, please Sign In or Sign Up          
 

Banks’ Assets Hit N24.335 Trillion


News » Health and Beauty
Nigeria

IMAGE: Naira Notes..jpg »

06.Mar.2014

 

Story:  Obinna Chima

 

The total assets and liabilities of Deposit Money Banks (DMBs) stood at N24.335 trillion at the end of the fourth quarter of 2013, according to the latest Central Bank of Nigeria (CBN) economic report.

The report said the amount represented an increase of 4.4 per cent over the level at the end of the preceding quarter.

The funds, which were sourced largely from increased mobilisation of demand deposit and federal government deposit, were used for accretion to reserves and purchase of government securities.

It noted that at N12.225 trillion, 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.

On the other hand, the 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. On the other hand, total specified liquid assets of the DMBs stood at N6.615 trillion, representing 39.5 per cent of their total current liabilities.

At that level, the liquidity ratio rose by 1.8 per cent above the level in the preceding quarter, and was 9.5 per cent points above the stipulated minimum ratio of 30 per cent.

The loans-to-deposit ratio, at 36.3 per cent, was 2.9 per cent above the level at the end of the preceding quarter, but was 43.7 per cent below the prescribed maximum ratio of 80 per cent.

Furthermore, the report showed that total assets/liabilities of the discount houses stood at N133.76 billion at the end of the review period, indicating a decline of 14.0 and 61.2 per cent below the levels at the end of the preceding quarter and the corresponding quarter of 2012, respectively.

The fall in assets relative to the preceding quarter was accounted for by the decrease in claims on Federal Government and Banks which more than offset the effect of the rise in Other Assets. “Correspondingly, the fall in total liabilities was attributed to the decline in capital and reserves, money-at-call and other amount owed, which exceeded the increase in other liabilities. Discount houses’ investment in Federal Government securities of less than 91-day maturity declined by 4.7 per cent to N31.4 billion and represented 30.6 per cent of their total deposit liabilities.

“At this level, discount houses’ investment was 29.4 per cent below the prescribed minimum level of 60 per cent for fiscal 2013. Total borrowing by the discount houses was N40.0 billion, while their capital and reserves stood at N18 billion,” it added.

Article Credit: Thisday newspaper.

Updated 5 Years ago
 

Find Us On Facebook

Tags:     Banks’ Assets Hit N24.335 Trillion

RELATED