The Nigerian banking sector remained resilient in February, according to a report released by the Central Bank of Nigeria.
The CBN disclosed that a member of the Monetary Policy Committee, Festus Adenikinju, said this at the last meeting of the MPC.
He said, “The report on banking system stability showed that the banking system remains robust, stable, and resilient. All metrics of financial system stability, including Capital Adequacy Ratio, non-performing loans ratio, liquidity ratio, and returns on assets and returns on equity are in line with the prudential guidelines.
“Moreover, measures of bank size, gross assets, gross deposits, and gross credit continued their upward trajectories. There is rising costs of credit as interest bands narrowed. The Other Financial Institutions continue to provide a significant amount of credit to households and small enterprises in the economy.”
It stated that, “Domestic claims rose by 6.82 per cent in February or annualised 40.92 per cent against the provisional benchmark of 16.23 per cent. Claims of other sectors annualised 29.28 per cent against 18.05 per cent benchmark, and on the central government by annualised 71.52 per cent as against 11.42 per cent. The OBB rate rose from 6.10 per cent on 22-February to 11.49 per cent on 18 March 2022, reflecting tight liquidity in the banking system.”