Uncategorized

Banks Credit to Private Sector rises by 1% in July 2012-CBN

Posted by InvestAdvocate on

More in Uncategorized:

alert3By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Banking system Credits to the Private Sector has risen to N14.845 billion in July 2012 indicating a rise of 1.0 percent (1.0%).

This is contained in the Central Bank of Nigeria’s (CBN’s) Economic Report for the Month of July 2012.

According to the CBN’s Economic Report for July 2012, the Banks Credit rise to the Private Sector by the 1.0% to N14, 845.4 billion when compared with 1.5% recorded at the end of June 2012 is on contrast with a decline of 0.2% in the corresponding period of 2011.

In the same vein, banking system’s claims on the Core Private Sector rose by 1.0% to N14, 253.0 billion above the level in the preceding month, compared with the growth of 1.5% at the end of the preceding month.

The CBN affirms the development reflected, largely, the 1.9% rise in Deposit Money Bank’s (DMBs’) claims on the Sector. “Relative to the level at end-December 2011, banking system’s credit to the Private Sector rose by 4.7%” the Report said.

The CBN’s Report further affirmed at N13, 098.8 billion, aggregate banking system credit (net) to the domestic economy at end-July 2012 fell by 1.6%, on month-on-month basis, in contrast to the increase of 0.5% at the end of the preceding month.

According to the Report, the development reflected, largely, the 26.5% fall in (net) claims on the Federal Government (FG). “Over the level at end-December 2011, aggregate banking system credit (net) to the domestic economy, fell by 4.3%, reflecting largely, the 251.5% fall in claims on the Federal Government” it said.

Also, the Report said Banking system’s credit (net) to the FG, on month-on-month basis, fell by 26.5% to negative N1, 746.6 billion, compared with the decline of 13.1% at the end of the preceding month.

 The CBN attributed the development largely; to the decline in banking system’s holding of FG Securities. “Over the level at end-December 2011, aggregate banking system’s claims (net) on the Federal Government fell significantly by 251.5%, reflecting, largely, the same reason as above. The Federal Government, however, remained a net lender to the banking system at the end of the review month” the July 2012 Economic Report from the CBN said.

 

Click here to Download July 2012 Economic Report by CBN

 

Comments are closed.