CBN: Banks’ annual loans to businesses hit N6.69tr

The value of new cash deposits attracted by banks to their vaults in the last one year rose to N6.69 trillion, the Central Bank of Nigeria (CBN) has announced.

The apex bank’s Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, who broke the news said commercial banks received additional N6.69 trillion new deposits from depositors between end-February 2021 and end-February 2022.

The total deposits in banks rose from N32.69 trillion in February 2021 to N39.38 trillion in February 2022, creating N6.69 trillion deposit growth. 

In her personal notes to the Monetary Policy Committee (MPC) members posted on the CBN’s website, Mrs. Ahmad said the  financial system remains resilient and continues to provide significant support for domestic economic recovery. 

“Data provided by the CBN staff showed stability in broad financial soundness indicators and sustained improvement in asset quality, alongside growing credit to the private sector,” she said.

According to her, capital adequacy as at February 2022 was at 14.40 per cent. Industry liquidity was also strong at 43.5 per cent over the same period while the non-performing loans ratio declined further to 4.8 per cent in February 2022, from 4.94 per cent in December 2021. 

Mrs. Ahmad, said the state of the industry reflects the case-by-case review of regulatory forbearance, effects of the Global Standing Instruction (GSI) policy, and sound industry risk management practices. 

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