Nigeria: Banks Grow Total Assets By 50 Percent N107.3trn

·Customers' deposits up 45% to N64.48trn

·As Senate urges CBN to engage critical stakeholders on recapitalisation

·Reiterates support for NDIC, Deposit insurance

By Babajide Komolafe, Economy Editor

Total Assets of the banking industry rose by 50 per cent, year-on-year, YoY to N107.3 trillion in November 2023 from N71.59 trillion in November 2022.

In the same vein, the banks grew customers' deposits by 45 per cent, YoY to N64.48 trillion in November 2023 from N44.49 trillion in November 2022.

Chairman, Senate Committee on Banking, Insurance & other Financial Institutions, Senator Adetokunbo Abiru state disclosed this while speaking at the retreat for the Committee organised by the NDIC in Lagos.

Abiru said: "As of November 2023, the Capital Adequacy Ratio of the banking sub sector was 12.3 percent and within regulatory requirements of between 10 percent and 15 percent. Liquidity ratio of 41.6 percent was in excess of the minimum requirement of 30 percent while Non-Performing Loans ratio of 4.2 percent was within the threshold of a maximum of 5 percent. Furthermore, total assets of the Nigerian banking industry increased from N71.59 trillion to N107.27 trillion between November 2022 and November 2023 while total deposits also climbed from N44.49 trillion to N64.48 trillion.

"While these are encouraging developments, we should not lose sight of the fact that these numbers pale in significance when viewed against the backdrop of naira depreciation.

"It goes without saying that the financial sector requires to be continuously strengthened to be able to perform its role of intermediating between surplus and deficit units in the economy.

"It is in this light that I welcome the plan by the Central Bank of Bank of Nigeria to recapitalize the banks. In doing so, the CBN will be well advised to engage all critical Stakeholders including the National Assembly

Speaking further, Abiru stressed the importance of the NDIC in sustaining confidence in the banking system.

He said, "I commend the role the NDIC has played over the years to protect depositors and the banking system from instability occasioned by loss of depositors' confidence."

Speaking earlier, Managing Director/Chief Executive, NDIC stressed the need for collaboration between the Senate and the Corporation.

He said: "The benefits of sound oversight have combined to underscore the significance of the legislature to the Corporation and the importance of harmonious working relationship between the two, in the interest of the banking system in particular and the economy in general."

Source: All Africa