Banks credit to economy hits N23.53tn

Banks’ credit to the economy rose to N23.53tn as of the end of March, the latest figures from the Central Bank of Nigeria have shown.

The CBN disclosed in its communiqué at the end of the Monetary Policy Committee on Tuesday that the figure rose from N22.68tn as of the end of 2020.

Part of the report read, “Accordingly, gross banking sector credit at end-March 2021 stood at N23.53tn compared with N22.68tn at end-December 2020.

“This represents an increase of N0.85tn (year-to-date), of which commercial and merchant banks disbursed (N0.66tn), microfinance banks (N0.13tn), development finance institutions (N0.05tn), and primary mortgage banks and finance companies (N0.01tn).”

The CBN Governor, Godwin Emefiele, said the liquidity condition in the banking system in the review period was determined by several factors including fiscal disbursements and withdrawals by states and local governments, periodic CRR debits, foreign exchange interventions, Open Market Operations, and maturing CBN Bills, the net effect of which imposed liquidity constraints on the banking system.