The Central Bank of Nigeria (CBN) third quarter deposits and liabilities result for the banks have grown to N19.7 trillion. This represents 8.9 per cent increase over the level at the end of the preceding quarter.
The funds, which were sourced, largely, from the increase in their unclassified liabilities and mobilisation of demand deposits were used mainly to increase reserves and extension of credit to the private sector.
A CBN circular on third quarter economic report shows the apex bank’s credit to the banks, largely, loans and advances, rose by 3.1 per cent to N396.5 billion at the end of the review quarter.
Also, banks’credit to the domestic economy rose by 13.3 per cent over the level in the preceding quarter to N12.3 trillion while total specified liquid assets of the banks stood at N2,trillion, representing 17.9 per cent of their total current liabilities. The development was attributed, largely, to the 151.4 per cent increase in net claims on the Federal Government.
According to the CBN report, the liquidity ratio fell by 20 percentage points from the level at the end of the preceding quarter, and was 12.1 percentage points below the stipulated minimum ratio of 30 per cent. The loans-to-deposit ratio fell by 1.5 percentage points below the level at the end of the preceding quarter to 43.4 per cent, and was 36.6 percentage points below the prescribed minimum ratio of 80.0 per cent.
Total assets/liabilities of the discount houses stood at N333.8 billion, indicating an increase of 20.9 per cent over the level at the end of the preceding quarter. The rise in assets was accounted for, largely, by the 54 per cent increase in claims on the Federal Government, reinforced by the 5.3 per cent increase in other assets.
Correspondingly, the increase in total liabilities was attributed, largely, to the increase of 51.1 and 30.6 per cent in the level of other liabilities and money-at-call, during the period.
Discount houses’ investment in Federal Government securities of less than 91-day maturity rose significantly by 347.5 per cent to N55.71 billion and represented 23.6 per cent of their total deposit liabilities. At this level, discount houses’ investment was also 36.4 percentage points below the prescribed minimum level of 60.0 per cent for this fiscal year. The quarterly report showed that there was no borrowing by the discount houses, while their capital and reserves stood at N49.8 billion.
Non-oil receipts stood at N667.3 billion, exceeding the budget estimate, the levels in the preceding quarter and the corresponding quarter of 2010 by 11.1, 34.3 and 27.9 per cent
Banks record N19t assets, liabilities in Q3