The aggregate banking system’s credit (net) to the domestic economy, quarter-on-quarter, grew by 3.1 percent to N21,409.8 billion, at the end of the second quarter of 2015, compared with the growth of 7.7 per cent at the end of the first quarter.
This, however, contrasted with the decline of 7.8 per cent at the end of the corresponding quarter of 2014. The development relative to the level at the end of the first quarter of 2015, reflected the 1.7 per cent growth in credit to the private sector, which more than offset the 15.3 per cent fall in net claims on the Federal Government. Relative to end December 2014, domestic credit grew by 11.1 per cent at the end of second quarter 2015, compared with the growth of 14.8 per cent recorded at the end of second quarter of 2014.
The development relative to the preceding quarter was attributed to 118.5 and 4.3 per cent growth in banking claims on the Federal Government and the private sector, respectively.
The Central Bank of Nigeria (CBN)’s economic report for the second quarter of 2015 revealed that banking system’s credit (net) to the Federal Government, quarter-on-quarter, fell by 15.3 per cent to negative N2,512.5 billion, in contrast to the growth of 89.4 and 114.3 per cent at the end of the preceding quarter and the corresponding quarter of 2014, respectively. The development relative to the first quarter of 2015 was due, largely, to the 13.9 per cent reduction in the banking system’s holdings of FGN Bonds.
Relative to end-December 2014, credit to the Federal Government grew by 118.5 per cent at the end of second quarter of 2015, compared with the growth of 85.8 per cent recorded at the end of second quarter of 2014.
The reported noted that at the end of the second quarter of 2015, banking system’s credit to the private sector, quarter-on-quarter, grew by 1.7 per cent to N18,897.3 billion, compared with the growth of 2.5 and 2.9 per cent at the end of the preceding quarter and the corresponding quarter of 2014, respectively.
The development relative to the level at the end of the preceding quarter was attributed to the 2.0 per cent growth in claims on the core private sector relative to the end-December 2014, credit to the private sector grew by 4.3 per cent at the end of second quarter 2015, compared with the growth of 4.5 per cent recorded at the end of second quarter of 2014.
At N5,951.5 billion, foreign assets (net) of the banking system, quarter-on-quarter, fell by 0.6 per cent at the end of the second quarter of 2015, compared with the decline of 13.9 per cent at the end of the first quarter of 2015. This, however, contrasted with the 16.2 per cent growth in foreign assets (net) of the banking system at the end of the corresponding quarter of 2014.
The development relative to the preceding quarter, was attributed to the 75.4 per cent decrease in the foreign assets holding of banks, which more than offset the 8.2 percent growth in net foreign assets holdings of the CBN. Relative to end-December 2014, foregin asset (net) fell by 14.4 percent, compared with a decline of 11.4 per cent recorded at the end of second quarter of 2014.
HOPE MOSES-ASHIKE
