• Saturday, May 25, 2024
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BusinessDay

Banks’ system credit to FG rise by 112.2%

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Banking system’s credit (net) to the Federal Government rose by 112.2 percent to N164.8 billion in the first quarter 2013, compared with the growth of 15.0 percent at the end of the preceding quarter and a decline of 11.3 percent in the corresponding period of 2012, the Central Bank of Nigeria (CBN) has said.

The development was accounted for, largely, by the increase in banking system’s holdings of Federal Government securities.

At N15,423.2 billion, aggregate banking system credit (net) to the domestic economy rose by 10.5 percent at the end of the first quarter of 2013, compared with the growth of 4.4 percent and a decline of 0.06 percent at the end of the preceding quarter and the corresponding quarter of 2012, respectively.

The development relative to the preceding quarter’s level, reflected, largely, the 112.4 percent increase in claims on the Federal Government.

At the end of first quarter 2013, banking system’s credit to the private sector fell by 0.2 percent to N15,285.3 billion, compared with the increase of 2.3 percent at the end of the preceding quarter and a decline of 0.45 percent at the end of the corresponding period of 2012.

The development, relative to the preceding quarter was attributed, wholly, to the 0.2 percent and 0.6 percent decline in claims on the core private sector and the state and local governments, respectively.

At N9,374.8 billion, foreign assets (net) of the banking system increased by 3.0 percent at the end of the review quarter, compared with the increase of 10.1 percent and 2.4 percent at the end of the preceding quarter and corresponding period of 2012, respectively. The development was attributed, largely, to the 3.1 percent and 2.7 percent increase in CBN and DMBs’ holdings of foreign assets, respectively.

HOPE MOSES-ASHIKE