CBN Says Bank Assets Rose To 64.32 Trillion In One Year

The data obtained from the Central Bank of Nigeria revealed that Nigerian banks’ total assets rose by N11.15 trillion in one year to N64.32 trillion as of April.

According to the data, the assets of the lending institutions had hit N53.17 trillion in the corresponding period of 2021. The 2022 numbers showed a 21 per cent increase over the period.

Kingsley Obiora, a personal statement of a member of the Monetary Policy Committee, which the CBN released, said the growth was driven by balances with CBN/banks, OMO bills, and credit to the real sector of the economy.

“The banking system remained sound, stable and resilient. Total assets of the banking industry grew by 20.97 per cent from N53.17 trillion in April 2021 to N64.32 trillion in April 2022, driven by balances with CBN/banks, OMO bills, and credit to the real sector of the economy.

It was, however, an improvement from 5.89 per cent at the end of April 2021, reflecting recoveries, restructuring of facilities, and sound management practices by Other Depository Corporations.

The interbank market stated that the Open Buy Back rate increased from 6.62 per cent in March to 7.49 per cent in April 2022, which indicates a tight banking liquidity condition, which helped to rein in inflationary pressures and safeguard a stable banking system.

Adeola Adenikinju, another member of the MPC, noted that measures of industry aggregates like total assets, total deposits, and total credits also maintained upward trajectories in the period.

According to him, industry credit increased by N4.65 trillion between April 2021 and April 2022.

He, however, attributed the growth primarily to the increased funding base of the industry and the CBN’s Loan to Deposit Ratio policy.