Deposits by Nigerian banks rose by N6.92tn from N36.13tn as of the end of October 2021 to N43.05tn in the corresponding period of 2022.
This was contained in the personal statements of members of the Central Bank of Nigeria Monetary Policy Committee.
The Deputy Governor, Financial System Stability Directorate, CBN, Aishah Ahmad, said, “Notably, total assets rose to N69.67tn in October 2022 from N57.3tn in October 2021, while total deposits rose to N43.05tn from N36.13tn over the same period. Total credit also increased by N5.32tn to N28.81tn between end-October 2021 and end-October 2022 with significant growth in credit to manufacturing, general commerce, and oil & gas sectors.
“The continued credit expansion particularly to output-enhancing sectors is expected to further support economic activities. However, sustained regulatory vigilance is required to mitigate any potential crystallisation of credit risk in the financial system in view of lingering macroeconomic risks
As anticipated, average lending rates have risen between June and October 2022, partly driven by the tight monetary policy stance of the MPC, which requires vigilance by the banks to forestall defaults and preserve asset quality.”
She said sustained implementation of the policy on GSI and effective credit risk management policies by the banks were useful in that regard, while recent initiatives of the Central Bank such as the naira redesign were expected to enhance monetary policy transmission via the banking system.
Notwithstanding the strong financial system fundamentals and satisfactory stress test results, she said, the Bank must remain vigilant and proactively manage operational, asset quality and other risks to financial system stability, especially with the challenging global economic environment.