By KELECHI MGBOJI
The total net asset of all Deposit Money Banks (DMBs) in the country has hit N22.06 trillion as at end of February, about 1.4 percent above the level at the end of January. In its economic report for February released yesterday, the Central Bank of Nigeria (CBN) also stated that the total specified liquid assets of the DMBs stood at N6.78 trillion, representing 45 per cent of their total current liabilities.
It said: “At that level, the liquidity ratio rose by 0.2 percentage point above the level in the preceding month, and was 15 percentage points above the stipulated minimum ratio of 30 per cent. The loans-to deposit ratio, at 40.6 per cent, was 1.1 percentage point below the level at the end of the preceding month, and 39.4 percentage points below the prescribed maximum ratio of 80.0 per cent.”
According to CBN, the funds were sourced mainly from increased mobilisation of time, savings and foreign currency deposits, adding that the funds were used largely in the extension of credit to the Federal Government and increase in foreign and unclassified assets. In the same vein, deposit money bank’s credit to domestic economy rose 1.2 percent to N13.643 trillion higher than the level in the preceding month of January.
Analysis of banks’ credit showed that credit to the Federal Government and private sector rose by 1.1 and 10.7 per cent, respectively. The publication also indicated that total assets and liabilities of the discount houses stood at N340 billion at end- February 2013, showing a decrease of 6.3 per cent below the level at end-January 2013.
The development was accounted for largely by the nine per cent decrease in claims on Federal Government. The decrease in total liabilities was attributed, largely, to the 12.7 per cent fall in money-at-call. Discount houses’ investment in the Federal Government’s securities of less than 91-day maturity decreased to N154.8 billion and accounted for 54.6 per cent of their total deposit liabilities.
Available data at the end-February 2013 indicated that activities on the Nigerian Stock Exchange were bullish. The volume and value of traded equities stood at 14.9 billion shares valued at N114.34 billion, in 167,442 deals, indicating an increase of 70 and 77 per cent, respectively, over the level during preceding month.