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Central Bank Boosts Economy With N3.3tr Credit

Emefiele

The Central Bank of Nigeria on Monday said it has approved a credit of N3.3 trillion to the productive sectors of the economy, giving intervention funds to businesses affected by the COVID-19 pandemic and endorsed the restructuring of loans.

CBN Governor Godwin Emefiele said this at the end of the Monetary Policy Committee (MPC) meeting, held in Abuja. He said that the loans were granted to manufacturing (N815 Billion), retail and consumer loan (N615 Billion), agriculture, forestry and fishery (255 Billion), general commerce (N221billion) and information and communications technology (N208 Billion) through the implementation of the Loan-to-Deposit Ratio (LDR). He said;

“For Capital Adequacy Ratio (CAR) which measures the size of capital that a bank deploys into risk asset, as at June 2019, CAR was 15.2 per cent but as at June 2020, it remains flat at 15 per cent.

“Liquidity ratio, in August 2019, was 48 per cent but as of June 2020, it had dropped to 37 per cent.

“In spite of these large sums granted, from N15.6 trillion to about N18.9 trillion, the prudential ratios are still looking so strong.

“This is a clear demonstration that the Nigerian banking sector remains very strong and resilient and able to support the economy,”

 

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