The total assets and liabilities of Deposit Money Banks in the country rose by 2.5 per cent to N21.30tn at the end of the fourth quarter of 2012, latest report by the Central Bank of Nigeria had shown.
According to the data released on Tuesday, total specified liquid assets of the DMBs stood at N6.18tn, representing 49.7 per cent of their total current liabilities.
At that level, the liquidity ratio rose by two percentage points above the level in the preceding quarter, but it was 19.7 percentage points above the stipulated minimum ratio of 30 per cent.
The loans-to-deposit ratio, at 42.3 per cent, was 2.3 percentage points below the level at the end of the preceding quarter, and 37.7 percentage points below the prescribed maximum ratio of 80 per cent.
The reports said, “At N13.96tn, aggregate banking system credit (net) to the domestic economy rose by 4.4 per cent at the end of the fourth quarter of 2012, compared with the growth of 0.4 and 37.4 per cent at the end of the preceding quarter and the corresponding quarter of 2011, respectively.
“The development relative to the preceding quarter’s level reflected largely the 15.1 and 2.3 per cent increase in claims on the Federal Government and private sector, respectively. Over the level at end-December 2011, aggregate banking system credit (net) to the domestic economy rose by two per cent, reflecting largely the 7.8 per cent increase in claims on the private sector.”
On the other hand, banking system’s credit (net) to the Federal Government, at the end of the review quarter, rose by 15.1 per cent to N1.32tn, in contrast to a decline of 13.3 per cent in the preceding quarter.
“The development was accounted for largely by the 35.3 per cent increase in banking system’s holdings of Federal Government securities, particularly FGN Bonds and Treasury Bills,” it said.
The report further said that the banking system’s credit to the private sector at the end of the fourth quarter 2012 rose by 2.3 per cent to N15.29tn, compared with the increase of 1.6 and 27.7 per cent at the end of the preceding quarter and the corresponding period of 2011, respectively.
According to the report, the development, relative to the preceding quarter is attributed wholly to the two per cent increase in claims on the core private sector.