The total assets and liabilities of banks in the country fell by N115 billion to N24.29 trillion in February. This represented a 0.5 percent decline when compared with the total assets of N24.41 trillion recorded in January.
The decline was however occasioned by 16.1 percent decline in the net foreign assets of banks during the month.
Meanwhile banks earned N1.8 billion from deposits kept with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF).
The CBN disclosed this in its monthly economic report for February. The report stated, “Total assets and liabilities of the deposit money banks (DMBs) amounted to N24, 292.8 billion, showing a decline of 0.5 per cent below the level at the end of the preceding month.
According to the report the net foreign assets of the banking system fell by 8.3 percent to N7.557 trillion from N8.23 trillion in January.
The net foreign assets of the CBN fell by 6.2 percent to N6.07 trillion from N6.47 trillion in January while that of the banks fell by 16.1 percent to N1.49 trillion from N1.77 trillion in January.
On the other hand, banks’ lending to the economy rose marginally by 2.2 percent in February. The CBN stated that, “At N12, 343.4 billion, banks’ credit to the domestic economy rose by 2.2 per cent above the level in the preceding month. The development was attributed to the 2.6 per cent increase in banks’ credit to the private sector, which more than offset the 4.9 per cent fall in banks’ credit to the Federal Government during the review month.
“Total specified liquid assets of the Deposit Money Banks (DMBs) stood at N5,945.9 billion. At that level, the liquidity ratio fell by 1.1 percentage point below the level in the preceding month and was 15 percentage points above the stipulated minimum ratio of 30 per cent. The loans-to-DMBs’ Credit to the domestic economy rose by 2.2 per cent above the level in the preceding month. Deposit ratio, at 55.5 per cent, was 2.0 percentage points above the level at the end of the preceding month, but was 24.5 percentage points below the prescribed maximum ratio of 80.0 per cent.”
The report also showed that banks deposited N4.953 trillion with the CBN through its Standing Deposit Facility (SDF), earning interest income of N1.8 billion.
