Nigerian Banks’ Assets And Liabilities Rose To NGN31.2 Trillion In Q2 2016

liabilities

Latest data released by the Central Bank of Nigeria, CBN shows that the total assets and liabilities of the commercial banks stood at NGN31,2 trillion at the end of the preceding quarter of 2016.

The data shows an increase of 9.6% when compared to the figure for last year. The funds were sourced, mainly, from time, savings and foreign currency deposits, foreign liabilities and unclassified liabilities.

The funds were used, mainly, to increase claims on private sector, acquire foreign and unclassified assets. At N20,4 trillion, banks’ credit to the domestic economy, rose by 11.2%, compared with 0.9% at the end of the preceding quarter.

The development was attributed to the significant increase in claims on the private sector, during the review quarter. Central Bank’s credit to the commercial banks rose by 34.2% to N1,0 trillion, at the end of the review quarter.

Total specified liquid assets of the banks stood at N6,5 trillion, representing 34.9% of their total current liabilities. At that level, the liquidity ratio fell by 5.0 percentage points below the level at the end of the preceding quarter but was 4.9 percentage points above the stipulated minimum ratio of 30.0 per cent. The loans-to-deposit ratio, at 74.9%, was 7.0 percentage points, above the level at the end of the preceding quarter, but 5.1 percentage point below the prescribed maximum of 80.0%.

In general, the Report is directed at a wide spectrum of readers including economists and financial analysts in government and the private sector, as well as general readers.

One of the key highlights of the second quarter was the sacking of the entire management of Skye Bank. The CBN has been reported to have injected about NGN110 billion into the bank. The CBN also defend Skye Bank against media reports that the bank was distressed and bankrupt.