The Central Bank of Nigeria disclosed this in
the personal statements of members of the Monetary Policy Committee.
According to a member of the MPC, Robert
Asogwa, the banking sector remained stable with strong liquidity.
He stated, “System liquidity remained ample
even though aggregate domestic credit grew by only 4.30 per cent in June 2021
compared with 4.79 per cent in May 2021.
“While credit to central government declined
during this period, the credit to the private sector grew. This progress is
largely attributed to the sustenance of the CBN’s credit enhancing policies.
“The banking sector itself remains stable and
resilient, with strong liquidity and capital adequacy ratios.
“The ratio of gross nonperforming loans to
total loans further declined from 5.8 per cent in May to 5.7 per cent in June
2021.”
He stated that repayments and recoveries were
noted in key sectors including, oil and gas, manufacturing, construction and
agriculture.
Also, another member of the MPC, Folashodun
Shonubi, said the banking sector remained resilient and continued to be the
major channel for supporting the domestic economy.
He stated that industry total asset and credit
rose further at end-June 2021, just as industry liquidity and capital adequacy
ratios stayed above the regulatory minimum.
He added, “The non-performing loan ratio
improved marginally to 5.7 per cent, though it was slightly above the
prudential, maximum of five per cent.
“Monetary aggregates developments and money
market rates reflected the impact of the bank’s liquidity management measures.”
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