Commercial Banks’ Assets, Liabilities Hit N37.14 Trillion
Figures obtained from the Central Bank of Nigeria (CBN) has shown that the total assets and liabilities of commercial banks stood at N37.14 trillion at the end of November 2018, representing 0.4 per cent decrease below the level at end-September 2018. According to the report, the funds were sourced, largely, from foreign liabilities; draw down on reserves and acquisition of credit from CBN.
The funds were used, mainly, for payment of matured demand deposits, and settlement of claims on Central Bank and Federal Government. At N19.75 trillion, banks’ credit to the domestic economy, at end-November 2018 showed an increase of 2.0 per cent above the level at end-September 2018.
The development reflected the 9.0 per cent and 32.8 per cent rise in claims on the Federal Government and state and local governments respectively, which more than offset the decline in claims on other private sector in the review period.
Total specified liquid assets of the banks were N12.16 trillion at end-November 2018, representing 56.8 per cent of the total current liabilities. At that level, the liquidity ratio was 3.0 percentage points below the level at end-September 2018, but 33.42 percentage points above the stipulated minimum ratio of 30.0 per cent.
The loans-to-deposit ratio, at 65.04 per cent, was 0.13 percentage points and 14.96 percentage points lower than the level at end-September 2018 and the prescribed maximum of 80.0 per cent, respectively. The CBN further stated that the money market was generally stable in the fourth quarter of 2018.
Liquidity was buoyed by inflow from fiscal injections, Federal Government bonds, Nigerian Treasury Bills and maturing CBN bills.
Outflow, such as the sale of CBN bills, FGN securities and provisioning and settlement for foreign exchange purchases, impacted on market liquidity. Overall, banks continued to access the intraday and standing facilities window to meet their short-term liquidity needs during the review quarter.
The total value of money market assets outstanding at the end of the fourth quarter of 2018 was N11.89 trillion, showing an increase of 0.4 per cent, compared with 1.4 per cent increase, at the end of the third quarter of 2018.
The increase was as a result of the 12.5 per cent and 1.5 per cent increase in bankers’ acceptances and FGN Bonds outstanding, respectively, during the review quarter.