Tuesday, October 27, 2020

Banks’ total credit rises to N19.33tn

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The total credit to the economy rose to N19.33tn in August as a result of the Central Bank of Nigeria’s policy on the Loan to Deposit Ratio.

Central Bank Governor, Godwin Emefiele, disclosed this during the Monetary Policy Committee meeting in Abuja.

He said the bank’s policy on Loan to Deposit ratio also resulted in a significant growth in credit to various sectors from N15.57tn to N19.33tn between end of May 2019 and end of August 2020, an increase of N3.77tn.

On monetary aggregates, broad money supply (M3) rose to 6.93 per cent (year-to-date) in August 2020 from 5.23 per cent in July 2020, reflecting the increase in both Net Foreign Assets and Net Domestic Assets.

Similarly, aggregate domestic credit (net) grew by 6.94 per cent in August 2020 compared with 9.43 per cent in July 2020.

He said total disbursements from the bank’s interventions due to COVID-19 pandemic amounted to N3.5tn including: real sector funds, (N216.87bn); COVID-19 Targeted Credit Facility (N73.69bn); AGSMEIS (N54.66bn); pharmaceutical and healthcare support fund (N44.47bn); and creative industry financing initiative (N2.93bn).