Banks Give N947 Billion Loan to Customers Amid Cash Crunch
- Nigerian banks have given N947 billion in loans to 130,854 persons and companies in one month
- A CBN top shot disclosed this after the Monetary Policy Meeting of the CBN
- Adeola Adenikinju said that banks had increased credits to their customers in the last few months
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The Monetary Policy Committee of the Central Bank of Nigeria (CBN) says Nigerian banks offered their customers about 130,854 new credits valued at N974.46 billion in December 2022.
Adeola Adenikinju, a member of the MPC, stated this in a statement at the last MPC meeting.
Source: Facebook
Banks' assets jump in three months
Adenikinju said that the banking ecosystem assets increased by N14.36 trillion while industry credit spiked by N5.14 trillion in 2022.
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He said:
“All measures of industry aggregates: assets, deposits, and credit rose year-on-year. Total assets of the banking industry grew by N14.36tn between the end of December 2021 and 2022. Similarly, industry credit increased by N5.14tn over the same period.
He said there was an uptick in the maximum lending rate from 28.14% to 29%.
He said that interest rates spread month-on-month increased to 29.13%, and the average savings rate spiked from 3.93% to 4.13% between November and December 2022, respectively.
CBN's action leads to a cash crunch
The development comes amid the naira redesign policy of the CBN, which caused a cash crunch in the country.
Data indicates that currency outside banks amounted to N2.57 trillion, according to reporting by Punch.
CBN data says that the apex bank has mopped up about N1.78 trillion from money outside the banking system.
CBN mops Up N2.09 trillion in 4 months as cash scarcity persists
Legit.ng reported that the Central Bank of Nigeria (CBN) had shrunk the currency in circulation from N3.29 trillion as of October 2022 to N1.38 trillion by January 2023 as it embarks on the demonetization policy with the naira redesign policy.
According to data obtained from the apex bank, this represents a drop of N1.91 trillion in three months.
The move is due to the naira redesign plans of the CBN announced by Godwin Emefiele in October last year.
Source: Legit.ng
