The Capital Adequacy Ratio(CAR)of the nation’s banks increased from 10.2 percent in December 2017 to 15.5 percent in September 2019, the CBN governor, Godwin Emefiele has said. The CBN Governor who disclosed this at the 54th Annual Bankers Dinner held in Lagos, yesterday also said the percentage of Non-performing loans in the banking sector has declined from its high of 14.7 percent in January 2017 to under seven percent as at October 2019.
Continuing, Emefiele said credit conditions in the bank ing system have improved supported by our new policy measures announced in June 2019, which requires banks to maintain a minimum 65 percent loan to deposit ratio. “In addition, banks are now able to recover delinquent loans from a customer’s accounts in other banks. As a result, gross credit increased by N1.16 trillion between May and October 2019 and this increase has been along all critical sectors of economy such as Manufacturing, Agriculture, telecom services and the creative industry , to mention a few .These measures have placed our banks in a much better position towards supporting a stronger economic recovery,” he said.
Emefiele who spoke on the theme: “Delivering a strong Sustainable Growth for the Nigerian Economy”, said the impact of a tighter monetary policy regime, attractive yields in the money market, and our efforts at supporting domestic productivity in the agriculture and manufacturing sectors; along with improvements in oil production, have supported continued foreign exchange inflows into the Nigerian market.
He disclosed that in the Investors’ and Exporters’ Forex Window, over $60 billion worth of transaction have taken place since the inception of the window in April 2017, and our foreign exchange reserves are above $40 billion as at October 2019, relative to its low point of $23 billion in October 2016. We have been able to build our reserves in the midst of lower oil prices, as strong reserves aid the confidence of domestic and external investors. Today, our current stock of external reserves is able to finance 9 months of current import commitments