The total assets of the discount houses stood at N131.0 billion at end-November 2013, showing an increase of 11.7 percent over the level at end-October 2013, according to the Central Bank of Nigeria (CBN).
The development was accounted for, largely, by the 15.9 percent, 14.8 percent, and 7.6 percent rise in claims on the Federal Government, banks and “others assets,” respectively.
Correspondingly, the increase in total liabilities was attributed, largely, to the 32.5 percent and 4.1 percent rise in money-at-call and other liabilities, which more than offset the 4.5 percent fall in capital and reserves.
In the Economic Report for the month of November 2013, released by the CBN last week, Discount Houses’ investment in Federal Government securities of less than 91-day maturity rose by 9 percent to N36.4 billion and accounted for 35.4 percent of their total deposit liabilities.
At that level, Discount Houses’ investment in Nigerian Treasury Bills (NTBs) rose by 16 percent above the level at the end of the preceding month, but was 24.6 percentage points below the prescribed minimum level of 60 percent. Total borrowing by the Discount Houses was N45.07 billion, while their capital and reserves totalled N18.4 billion. This resulted in a gearing ratio of 2.4:1, compared with the stipulated maximum of 50:1 for the fiscal year 2013.
Available data indicated that total assets and liabilities of the deposit money banks (DMBs) amounted to N23,522.53 billion, showing a marginal increase of 0.2 percent above the level at the end of the preceding month.
Funds were sourced mainly from time, savings and foreign currency deposits, as well as accretion to unclassified assets.
The funds were used, largely, to extend credit to the private sector and payment of claims on demand deposit.
At N11,527.7 billion, DMBs’ credit to the domestic economy rose by 2.4 percent above the level in the preceding month. The development was attributed largely to the rise in banks’ credit to the private sector during the review month.
Total specified liquid assets of the banks stood at N6,633.3 billion, representing 41.4 percent of their total current liabilities. At that level, the liquidity ratio fell by 0.6 percentage point below the level in the preceding month, but was 11.4 percentage points above the stipulated minimum ratio of 30 percent. The loans-to-deposit ratio, at 36.1 percent, was 1.5 percentage points above the level at the end of the preceding month, but 43.9 percentage points below the prescribed maximum ratio of 80 percent.