Thursday , October 21 2021

CBN records N860bn credit flow to economy

The Central Bank of Nigeria has recorded increase in the credit flow currently placed at N860 billion into the various aspect of the nation’s economy as a result of policy direction of the apex bank.

The Director banking supervision, Central Bank of Nigerian (CBN) Mr. Ahmed Abdulahi made this known yesterday during the press briefing after the Bankers Committee meeting in Abuja on Thursday.

Abdulahi explained that increased flow of credit to the system was a collaborative effort of the CBN and commercial banks as they bought into the vision of the regulatory institution.

He also stated that there is improvement in the inflow of remittances into the economy and as a result the financial indices of the industry have appreciated.

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According to him, “The growth in credit is significant across all the banks. Banking industry responded to policy of CBN to provide credit, grow the aggregate credit by 5.5per cent, when annualized it is very encouraging.”

Speaking also Managing Director Citi Bank, Nigeria, Akin Dawodu stated that changes in the operating environment of the financial; sector has helped to boost lending as risk management has been taken care of by BVN which was not existing before now.

”Institutional framework for risk management has improved. The discussions were very useful, deposit ratio compliance, increased by N100 billion in three months.  We agreed for the banks will continue to play active role intermediary in the financial system.”

“The incentive that is in the market now did not exist. The biggest challenge in making credit available is character.  New incentives are making it possible to create a more lending culture.”

On his part, Group Managing Director/ Chief Executive Zenith Bank Ebenezer Oneyeagwu explained that Cashless policy that is operational in some states of the federation, aims to boost aggregate demand in the financial system, increase financial inclusion and it is in the overall interest of the economy. “It will boost growth once the economy is growing everybody will benefit CBN should be supported,” he stated.

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