Business
Banking System Credits Up By 4.6%
The 5.5 per cent increase in claims on the private sector drove the aggregate banking system’s credit (net) to the domestic economy by 4.6 per cent in July 2009, the Central Bank of Nigeria (CBN) has disclosed.
Claims on the private sector include gross credit from the financial system to individuals, enterprises and non-financial public entities not included under net domestic credit, as well as financial institutions not included elsewhere.
Before the recent CBN cleansing exercise in the banking sector, banks credit to the economy has been the major driver of recorded growth in other sectors of the economy. This is an indication that other sectors’ activities may have been boosted in relative terms by 4.6 per cent increase in banks’ credit to the economy.
This recorded credit level is compared to the increase of 3.6 per cent in the preceding month.
At N3.088 billion, the banking system’s credit (net) to the Federal Government declined by 7.2 per cent, compared to the fall of 4.9 per cent in June, 2009. The fall was attributed wholly to the 11.1 per cent decline in deposit money banks’ (DMBs) holdings of government securities during the month.
The banking system’s credit to the private sector rose by 5.5 per cent to 9.026 billion, compared to the increase of 0.6 per cent in June 2009. This reflected largely the 4.6 per cent increase in DMBs claim on other private sectors. At N7.554 billion, foreign assets (net) of the banking systems declined by 1.2 per cent, as against the increase of 0.1 per cent in the preceding month. The development was attributed to the fall in both CBN and DMBs’ holding.
Meanwhile, the recorded contraction in broad money (M2) is a reflection of the respective decline of 1.2 and 8.5 per cent in net foreign assets and other assets (net) of the banking system. Barely a month to the end of year 2009, the apex bank noted in its July report that over the level at end – December 2008, M2 decline by 3 per cent.
With the expectation of more developments on the sector by the CBN as the year draws to a close, monetary and credit developments in the economy have been trailed with mixed developments in July.
For instance, provisional data by the CBN indicated a decline in monetary aggregates at the end July 2009, while broad money (M2) fell by 2.1 per cent to N8.889 billion, compared to the 4.1 per cent decline in June 2009. Similarly, narrow money (M1) declined by 4 per cent to N4.303 billion, as against the incase of 3.8 per cent in the preceding month.
The CBN revealed that quashi money fell by 0.2 per cent to N4.585 billion, in contrast to the increase of 4.4 per cent in June 2009. The development reflected the decline in all the components, namely: time, savings and foreign currency deposits of the DMBs.
Other assets (net) of the banking system also fell by 8.5 per cent to N4.602 billion, compared to the decline of 3.4 per cent in the preceding month. The fall was attributed to the decline in unclassified assets of both the CBN and the DMBs.
At N1,008 billion, currency in circulation increased by 0.2 per cent in July 2009, over the level in the preceding month. The rise was due to the 2.7 per cent increase in currency outside the banks. Monetary aggregates contracted further in July 2009, while banks’ deposit and lending rates indicates a general increase. The value of money market assets increased, largely on account of the rise in commercial papers (cps).
Business
Kenyan Runners Dominate Berlin Marathons
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.
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