Banking sector credit to the private sector declined by N248 billion to N16.769 trillion as at the end of
According to the Central Bank of
In addition, the data also showed that the total amount of Deposit Money Banks' (DMBs') reserves with the central bank fell to N3.582 trillion in the review month; down from the N3.726 trillion it recorded the previous month.
Bank reserves are deposits in accounts with the central bank that are not to be lent out. It is held as part of risk management measures.
Meanwhile, broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts also dropped slightly to N15.907 trillion in the month under review, from N15.973 trillion recorded in April.
Also, the Narrow Money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank declined to N6.742 trillion, from N7.086 trillion the previous month.
Furthermore, currency outside banks reduced marginally to N1.205 trillion, from N1.228 trillion recorded the previous month, just as demand deposits which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution also reduced slightly to N5.536 trillion in May, as against the N5.858 trillion it was the previous month.
But, quasi money, which is made up of highly liquid assets that can easily be converted to cash increased to N9.166 trillion in May, from N8.887 trillion. While net foreign assets stood at N7.693 trillion in the month under review, from N7.716 trillion, net domestic assets decreased slightly to N8.214 trillion, from N8.257 trillion.
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