Banks’ Assets Increase in April – CBN

• Banks’ Assets Increase in April – CBN

Banks total assets and liabilities grew by 0.5 percent in April, according to the Central Bank of Nigeria.

The total assets and liabilities of Nigerian banks stood at N38.6 trillion at the end of April.

“Funds were sourced, mainly, from mobilisation of time, savings and foreign currency deposits, drawdown on reserves and reduction in claims on central bank,” CBN noted in its Economic Report for May 2019.

According to the apex bank, the funds were used by the banks to reduce claims on the federal government, pay off demand deposits and acquire foreign assets.

The CBN also noted that banks’ credit to the domestic economy grew by 0.6 percent to N20.97 trillion during the same period.

This, the bank tied to the surge in claims on the Federal Government.

Total specified liquid assets of banks in Nigeria stood at N13.6 trillion in April, representing 60.3 per cent of their total current liabilities.

“At that level, the liquidity ratio was 0.1 percentage point below the level at the end of the preceding month but was 30.3 percentage points above the stipulated minimum liquidity ratio of 30.0 per cent,” the apex bank stated.

The loans to deposit ratio dipped by 1 percent to 58.49 percent in April when compared to that of March.