The nation's banks ' Capital Adequacy Ratio(CAR) increased from 10.2 percent in December 2017 to 15.5 percent in September 2019, Godwin Emefiele, CBN governor, said. The CBN Governor, who announced this at the 54th Annual Bankers Dinner held in Lagos, also said yesterday that the percentage of non-performing loans in the banking sector decreased from its peak of 14.7 percent in January 2017 to below seven percent as of October 2019.
Continuing, Emefiele said credit conditions have improved in the banking system supported by our new policy measures announced in June 2019, which requires banks to maintain a minimum deposit-to-deposit ratio of 65 percent. "Furthermore, banks can now recover delinquent loans from other banks ' accounts of a customer. As a result, gross credit grew by N1.16 trillion between May and October 2019 and this growth was in all vital economic sectors such as manufacturing, agriculture, telecommunications services, and the creative industry, to name a few. Such steps placed our banks in a much better position to support a stronger economic recovery, "he said.
Emefiele, who spoke on the theme: "Building a Strong Sustainable Growth for the Nigerian Economy," said the impact of a tighter monetary policy regime, attractive yields on the money market and our efforts to support domestic productivity in the agricultural and manufacturing sectors; supported continued foreign exchange inflows into Nigeria along with improvements in oil production,continued foreign exchange inflows to the Nigerian market have been funded.
He reported that more than $60 billion in transactions have taken place in the Investors and Exporters ' Forex Window since the launch of the window in April 2017 and that our foreign exchange reserves are above $40 billion in October 2019, compared to its low point of $23 billion in October 2016. Amid lower oil prices, we have been able to build our reserves, as strong reserves help domestic and external investors trust. Today, our current external reserve stock is capable of financing 9 months of current import commitments.
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