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Bank loans to domestic economy rise to N10tn

By BusinessNews Staff on July 31, 2014

Deposit Money Banks’ total loans and advances to the domestic economy hit N10tn as of March 2014, the Central Bank of Nigeria’s latest statistics indicated.

“Total loans and advances in the review period showed that total loans and advances of the DMBs to the domestic economy stood at N10tn, representing an increase of N151.0bn or 1.5 per cent above the level recorded in the preceding month,” the report stated.

The CBN’s Quarterly Statistical Bulletin obtained on Tuesday also revealed that DMBs credit to the private sector had increased by N118bn to N11.08tn.

The report read, “At N11.08tn, total credit to the private sector was N118.0bn or 1.1 per cent above the level achieved in the preceding month. The 1.1 per cent rise in DMBs’ claims on private sector was largely accounted for by the increases of N101.2bn, N13.6bn and N9.9bn in loans and advances to other customers, investments and commercial paper/bankers acceptance, respectively.

The report further showed that at N4.996tn, domestic investments of the DMBs amounted to N45.3bn or 0.9 per cent higher than the level recorded a month earlier

According to the CBN data, sectoral distribution of total credit extended to the private sector by the DMB s in the review month stood at N10.383tn.

This, the report, said, reflected an increase of 1.1 per cent, when compared with the level recorded in the preceding month.

Further analysis revealed that the preferred sectors had 36.9 per cent of the total credit, while less-preferred sectors gulped 42.1 per cent; and others (general) received 21.0 per cent

The CBN quarterly data showed that DMBs total assets and liabilities as of March 2014 stood at N24.474tn, representing an increase of N181.6bn or 0.7 per cent above the level recorded in February 2014.

The rise in total assets was largely attributed to the increases in unclassified assets, foreign assets and claims on private sector by N201.6bn or 6.9 per cent, N128.5bn or 6.3 per cent and N118.0bn or 1.1 per cent, respectively.

Similarly, the rise in total liabilities was majorly attributed to increases of N132.7bn or 3.3 per cent, N122.8bn or 1.4 per cent and N115.5bn or 2.3 per cent in capital accounts; time, savings and foreign currency deposits; and demand deposits, respectively.

“These increases were, however, moderated by the decreases of N169.3bn or 5.8 per cent, N43.7bn or 7.8 per cent and N41.5bn or 1.6 per cent in unclassified liabilities, foreign liabilities and central government deposits, respectively,” the report added.

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