proven that the Nigerian economy remains sound and resilient. For instance, as of June last year, the non-performing loans ratio in the industry dropped to 6.41 per cent from 11.1 per cent in the previous year. On the other hand, the size of capital deployed by banks into real assets, which is measured by the capital adequacy ratio was 15.2 per cent as of June 2019. The following year, this figure remained flat at 15 per cent.
Meanwhile, the liquidity ratio as of June 2020 dropped to 37 per cent from 48 per cent by August 2019. Emefiele noted that this however is understandable, considering the increase in gross loans and advances into the economy from N15.6 trillion in June 2019 to N18.9 trillion the following year as a result of the CBN’s loan to deposit ratio.
