The value of consumer credit in the country grew by 24.5 per
cent to N782.6 billion as at December 2013, compared with a marginal growth of
0.8 per cent in the first half of 2013.
The Central Bank of Nigeria (CBN)
disclosed this in its latest Financial Stability Report posted on its website
at the weekend.
As a ratio of credit to the core private sector, consumer credit constituted five per cent, compared with the 4.2 per cent it stood at the end of June 2013, the report also stated.
As a ratio of credit to the core private sector, consumer credit constituted five per cent, compared with the 4.2 per cent it stood at the end of June 2013, the report also stated.
Total bank loans and advances to the various sectors of the
economy grew by 13.9 per cent to N10.043 trillion at the end of December 2013.
The oil and gas sector recorded the highest growth rate, with a share of 24.4
per cent, followed by manufacturing (12.9 per cent) and the general sector
(11.6 per cent).
Furthermore, the report showed that the share of the
agricultural sector declined to 3.7 per cent, from 4.0 per cent in the first
half of 2013.
According to the central bank, continued dominance of short-term
deposits constrained the ability of banks to lend long term loans in the period
under review, especially to the real sector.
Also, the quality of assets of the
banking industry improved slightly in the second half of 2013, compared with
the first half.
The ratio of non-performing loans (NPLs) to total loans also dropped by 0.5 per cent to 3.2 per cent as at the end of December last year, from 3.7 per cent as at June last year.
The improvement in asset quality was attributed to stricter adherence to credit risk management policies and standards by banks.
The ratio of non-performing loans (NPLs) to total loans also dropped by 0.5 per cent to 3.2 per cent as at the end of December last year, from 3.7 per cent as at June last year.
The improvement in asset quality was attributed to stricter adherence to credit risk management policies and standards by banks.
“Liquidity stress test was conducted at end-December 2013 to
assess the resilience of the banking industry to liquidity and funding shocks,
using the Implied Cash Flow Analysis (ICFA) and Maturity Mismatch/Rollover Risk
approaches,” it disclosed.
According to the report, the banking industry remained
competitive in bot
