BANKS REDUCE CONSUMER CREDITS BY 11%

Written by on November 6, 2020

CREDIT LOANS BY COMMERCIAL BANKS TO CONSUMERS FELL CUMULATIVELY BY 11 PERCENT OR N100 BILLION  TO N1.4 TRILLION OVER TWO MONTHS JULY AND AUGUST 2020 DRIVEN BY PRESSURE TO CURTAIL RISING BAD LOANS.

BANKERS SAID THE DEVELOPMENT WAS PROMPTED BY THE IMPACT OF THE COVID-19 PANDEMIC AS WELL AS RISE IN BAD LOANS IN THE FIRST FOUR MONTHS OF THE YEAR.

AN ANALYSIS OF THE MONTHLY ECONOMIC REPORTS OF THE CENTRAL BANK OF NIGERIA (CBN) SHOWS THAT VOLUME OF BANKS’ LENDING ON CONSUMER CREDIT DECLINED 3.8 PERCENT IN JULY TO N1.47 TRILLION FROM N1.53 TRILLION IN JUNE.

THE DECLINE WORSENED IN AUGUST WHEN CONSUMER CREDIT DROPPED FURTHER BY 6.7 PERCENT TO N1.43 TRILLION, GIVING A CUMULATIVE DECLINE OF 11 PERCENT IN CONSUMER CREDIT OVER THE TWO CONSECUTIVE MONTHS.

THIS DEVELOPMENT IS IN CONTRAST TO THE 14 PERCENT GROWTH IN CONSUMER CREDIT  FROM JANUARY TO MAY THIS YEAR.

 


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