Total deposits in the banks rose by 24.17 per cent from N33.85tn as of the end of June 2021 to N42.03tn in the corresponding period of 2022.

The Deputy Governor, Financial Systems Stability Directorate, Aishah Ahmad, disclosed this in her personal statement at the last MPC meeting.

She said, “Key industry aggregates also continued their year-on-year upward trajectory with total assets rising to N65.48tn in June 2022 from N53.64tn in June 2021, while total deposits rose to N42.03tn from N33.85tn over the same period.

“Gross credit has maintained an upward trajectory since 2019, rising by N5.02tn between June 2021 and June 2022 with significant growth in credit to manufacturing, general commerce and oil & gas sectors.

“This notable increase was achieved amidst continued decline in non-performing loans ratio from 5.3 per cent in April 2022 to 5.0 per cent in June 2022.”

She also said results of stress tests showed resilience of banks’ solvency and liquidity ratios in response to potential severe macroeconomic shocks.

“The Bank must remain vigilant to proactively manage probable macro risks to the financial system such as lingering spillover effects of the pandemic, winding down industry forbearance portfolio, and other risks to financial stability such as exchange rate, operational and cyber security risks,” she added.

A member of the MPC, Folashodun Shonubi, said the financial sector recorded some significant growth during the period including deposits in the bank .

He said, “Prudential indicators in the banking sector remained within acceptable levels, highlighting resilience of the sector.

“Even as total asset, deposit and credit maintained their upward trend, the non-performing loans ratio improved further to 4.95 per cent, below the prudential maximum of 5.0 per cent.

“Industry capital adequacy and liquidity ratio were maintained within regulatory thresholds, though returns on equity and investment recorded muted improvement, reflecting the high operational cost and tight operating environment.”