• Business - Economy
  • Updated: March 08, 2023

CBN Says Banking Sector Remains Safe Amid Economic Challenges

The Central Bank of Nigeria (CBN) has said that despite challenges in the economy, the Nigerian banking system has remained sound and resilient.

The CBN made this known in a statement by a member of the Monetary Policy Committee, Kingsley Obiora after its last meeting in Abuja.

"The banking system remains sound, safe, and resilient. Industry non-performing Loans decreased from 4.9 per cent in December 2021 to 4.2 per cent in December 2022, which was below the maximum prudential requirement of 5.0 per cent.

“The decline in NPLs was attributable to write-offs, restructuring of facilities, Global Standing Instruction and sound credit risk management by banks.

"Total assets of the banking industry grew by N14.36 trillion or 24.24 per cent from N59.24 trillion in December 2021 to N73.59 trillion in December 2022, driven by balances with CBN/banks, investments, and credit expansion to the real sector.”

As a result, he said, total gross credit increased by N5.14 trillion or 20.93 per cent between the end of December 2021 and December 2022, from N24.57 trillion to N29.72 trillion, due to the increase in the industry funding base as well as the CBN’s directive on Loan to Deposit Ratio, which has encouraged banks to increase lending to the real sector of the economy, and business strategy and competition.

He added that the increase in credit to the key sectors of the economy was expected to boost aggregate demand and promote economic growth, job creation, and poverty alleviation.

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Felicia Abisola  Olamiji
Felicia Abisola Olamiji

  A graduate of English Language from Olabisi Onabanjo University, passionate about learning new...

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