Banks’ assets, liabilities now N40.87trn – CBN report

By Chika Otuchikere

At the end of November, 2091, the total assets and liabilities of commercial banks stood at N40.87 trillion, representing 3.2 per cent increase above the level at the end of September 2019.

A Central Bank of Nigeria (CBN) fourth quarter report disclosed that the funds were sourced largely from increased unclassified and foreign liabilities, mobilisation of time, savings and foreign currency deposits.

It stated that the funds were used, mainly, for purchase of unclassified and foreign assets, and to boost reserves.

At N22.96tn, banks’ credit to the domestic economy, at the end of November 2019, showed an increase of 3.8 per cent, compared with the level at the end of September 2019.

The CBN stated that the development reflected, largely, the 4.7 per cent and 3.6 per cent rise in claims on the Federal Government and the private sector, respectively, in the period under review.

According to the apex bank, the total specified liquid assets of the commercial banks was N14.66tn at the end-November 2019, which stood for 60.6 per cent of the total current liabilities.

At that level, the liquidity ratio was 2.9 percentage points and 43.3 percentage points above the level at the end-September 2019 and the stipulated minimum ratio of 30.0 per cent, respectively.

The bank further stated that the loans-to-deposit ratio, at 62.9 per cent, was 0.7 percentage point higher than the level at the end of September 2019, but 17.1 percentage points lower than the prescribed maximum of 80.0 per cent.

The CBN added that developments in the money market were stable, as the market was largely liquid during the review period.

It disclosed that activities that boosted liquidity were mainly inflow from repayment of matured CBN bills, maturing Federal Government bonds and Nigerian treasury bills, as well as fiscal disbursements to the three tiers of government, while provisioning and settlement of foreign exchange purchases, auctioning of CBN bills, FGN bonds and Nigerian treasury bills moderated liquidity.

Total value of money market assets outstanding in the fourth quarter of 2019 stood at N13.04bn, an increase of 4.8 per cent, compared with the increase of 2.9 per cent at the end of the third quarter of 2019.

The CBN added that the development was attributed, largely, to the 6.2 per cent increase in FGN bonds outstanding during the quarter under review.

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