By Amaka Ifeakandu
Lagos
Total deposits at the Central Bank of Nigeria (CBN) amounted to N6.810 trillion at the end February this year. The figure indicated a decline of 1.0% below the level at the end of the preceding month.
The development reflected the fall in banks’ deposits, which more than offset the increase in deposit by “others” and federal government. The report showed that off the total deposits, the percentage shares of the federal government, banks and “others” were 39.5, 54.4 and 6.1%, respectively.
Reserve Money (RM) fell by 2.7% to N5.258 trillion at the end of the review month, reflecting the trends in currency-in-circulation and banks’ reserves. Currency-in-circulation also declined by 1.9% to N1.558 trillion in the review month, compared with 10.6 and 12.3% at the end of the preceding month and end-December 2013, respectively.
The development, relative to the preceding month reflected the 5.6% decline in its currency outside banks component. The CBN report further indicated that total assets and liabilities of the deposit money banks (DMBs) amounted to N24.292 trillion, showing a decline of 0.5% below the level at the end of the preceding mo-nth.
Funds were sourced mainly from reduction in unclassified assets, claims on the central government; and claims on the Central Bank. The funds were used, largely, to build-up of reserves and extend credit to the private sector.
Banks’ credit to the domestic economy rose to N12.343 trillion a surge of 2.2% above the level in the preceding month. The increase in credit was due to 2.6% increase in banks’ credit to the private sector, which more than offset the 4.9% fall in banks’ credit to the federal government during the review month.
Total specified liquid assets of the DMBs stood at N5.945 trillion. The CBN said at that level, the liquidity ratio fell by 1.1% point below the level in the preceding month and was 15.0% points above the stipulated minimum ratio of 30.0%. The loans-to-deposit ratio, at 55.5%, was 2.0 percentage points above the level at the end of the preceding month, but was 24.5 percentage points below the prescribed
