RAJAB 9 1430 A.H.
WEDNESDAY JULY, 1 2009
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First Bank, Zenith top in credit to economy in 2008 -Report
First Bank Nig Plc topped the table of banks with high credit to the economy by the end of 2008 with N811.39 billion, according to a Central Bank of Nigeria (CBN) report.
Zenith Bank Nig Plc, which closed the year with N690.52 billion, was second.
The total credit to the economy, according to the CBN, as at the close of 2008 was N7.4 trillion and the two banks had given out N1.5 trillion of the total amount.
The International Monetary Fund (IMF) had expressed concern at the high level of credit to the economy by the 24 Nigerian banks at the World Bank/IMF Spring Meetings in Washington DC in April.
The News Agency of Nigeria (NAN) reports that the CBN had already requested all the banks to summit details of their transactions with Transnational Corporation (Transcorp), Virgin Nigeria Plc and the companies operating in the energy sector.
The CBN issued three circulars in the month of June, posted on its website, to the banks to submit details on its exposures.
The financial regulatory body also warned the banks to be more wary in lending to the public sector.
``Banks are reminded of the history of non-performing public sector credits, and are therefore strongly advised to exercise caution and set a more conservative threshold to avoid the mistakes of the past.
The three circulars to the banks on credit to the economy were signed by Dr Dan Eke, Director, Banking Supervision.
NAN reports that the CBN said the banks were also about N800 billion exposed to the capital market as at the end of 2008.
The exposure to the market generated fears during the plunge of the market as customers kept suspecting that the banks were not as healthy as they appeared due to exposures.
Details of the ``Banks Credit to the Economy as at December 2008’’ made available to NAN indicated that Intercontinental Bank Nig Plc gave out N639.37 billion as at the close of 2008, while Union Bank of Nig Plc loaned out N551.82 billion.
According to the CBN report, Oceanic Bank International Plc gave N492.75 billion in credits to the economy by the end of 2008, closely followed by PlatinumHabib Bank Plc, which loaned out N468.48 billion for the period.
Access bank Plc, according to the report, gave credit of N457.88 billion to the economy, while United Bank for Africa (UBA) Plc accounted for N395.42 billion.
Guaranty Trust Bank (GTB) Plc gave credit of N393.58 billion to the economy, while First City Monument Bank Plc (FCMB) loaned out N319.21 billion.
The report said AfriBank Nig Plc was responsible for N300.39 billion, followed by Diamond Bank Nig Plc, which gave out a credit of N278.50 billion to the economy as at the end of 2008.
Fidelity Bank Plc, according to the report, gave credit of N264.47 billion, while Skye Bank and First Inland Bank Plc gave credits worth N239.48 billion and N150.49 billion respectively.
The report said Wema Bank Plc’s credit to the economy was N149.80 billion.
The report said Ecobank Nig Plc and Unity Bank Plc had credits worth N140.38 billion and N127.46 billion respectively.
The credit to the economy by Spring Bank Plc and Stanbic IBTC Bank Plc were N122.35 billion and N113. 72 billion respectively, says the report.
