CEM REPORT, FINANCE | The total assets of the banking industry has grown by a whopping 24.24 percent.
This is as non-performing loans (NPLs) dipped below the regulatory benchmark of 5 percent to 4.2 percent at the end of December 2022.
This is according to statement by the Central Bank of Nigeria (CBN) Deputy Governor, of Economic Policy, Kingsley Obiora published on its official website over the weekend.
According to the report, banking asset grew by N14.36 trillion or 24.24 per cent from N59.24 trillion in December 2021 to N73.59 trillion in December 2022.
He attributed the growth to balances with CBN/banks, investments, and credit expansion to the real sector.
He further added that as a result “total gross credit increased by N5.14 trillion or 20.93 per cent between the end of December 2021 and December 2022, from N24.57 trillion to N29.72 trillion, due to the increase in the industry funding base as well as the CBN’s directive on LDR, which has encouraged banks to increase lending to the real sector of the economy, and business strategy and competition.
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The increase in credit to the key sectors of the economy is expected to bolster aggregate demand and promote economic growth, job creation, and poverty alleviation.”
Additionally, he said that the banking industry Non- performing Loans decreased from 4.9 per cent in December 2021 to 4.2 per cent in December 2022.
He noted that the recorded decrease is below the maximum prudential requirement of 5.0 per cent.
The decline in NPLs was attributable to write-offs, restructuring of facilities, Global Standing Instruction (GSI) and sound credit risk management by banks.