The Central Bank of Nigeria’s (CBN) Financial Stability Report (FSR) has revealed that in terms of size of assets and deposit of banks, the market share of the five largest banks in the country, declined to 43.30 per cent and 51.96 per cent in the first half of 2016, from 60.61 per cent and 52.94 per cent in the second half of 2015 respectively.

The FSR for June 2016 posted on the central bank’s website showed that the market share of the largest bank’s deposits and assets stood at 12.84 and 13.52 per cent respectively in the first half of 2016.

The remaining 18 banks had market shares ranging from 0.21 per cent to 6.58 per cent in deposits and 0.26 per cent to 6.41 per cent in assets, reflecting low competition in the market.
This finding, according to the CBN, was supported by the Herfindahl-Hirschman Index (HHI) of the industry of 743.37 and 751.17 for deposits and assets, at end-June 2016, compared with 788.09 and 781.40 at end-December 2015, respectively.

” Despite the improvement recorded relative to the first half of the year, the structure of the banking industry in the first half of 2016 remained oligopolistic. Net domestic credit (NDC) of the banking system grew by 12.52 per cent to N24, 318.14 billion at the end of the first half of 2016, compared with the growth of 12.13 and 11.08 per cent at the end of the preceding and the corresponding periods of 2015, respectively.

“This reflected the increase in net claims on the private sector. In terms of growth in M2, NDC contributed 13.51 percentage points, compared with 12.27 percentage points at the end of the preceding half year,” it added.

According to the report, the structure of bank credit in the first half of 2016 indicated that short-term credit remained dominant. Credit maturing within one year accounted for 46.0 per cent, compared with 47.1 per cent at the end of the second half of 2015. The medium-term7 and long-term8 credit stood at 18.1 and 35.9 per cent, compared with 16.9 per cent and 36.0 per cent at the end of the second half of 2015.

Although the report stated that the central bank’s efforts towards maintaining a stable foreign exchange rate were sustained in the first half of 2016, it revealed that external shocks, speculative demand pressure and low accretion to external reserves remained the major challenges to the stability of the exchange rate.

” Consequently, the CBN introduced the Flexible Exchange Rate regime on June 20, 2016 and revised guidelines to strengthen the operation of the foreign exchange market were issued. The objective of the new policy was to enhance efficiency, boost liquidity and promote stability in the market.
“In the review period, the average exchange rates at the interbank and BDC segments depreciated by 15.00 and 26.58 per cent from N196.99/US$ and N258.30/US$ as at end- December 2015 respectively, to close at N231.76/US$ and N351.82/US$ at end-June 2016, respectively,” it added.

“Although the outlook for the rest of the year appears to be challenging, the current measures put in place … are expected to minimise the impact of shocks to the domestic economy.”

http://www.thisdaylive.com/index.php/2016/10/06/nigerias-five-largest-banks-record-drop-in-market-share/

No free corrupt monies anymore. They have to do clean investment Nigeria banks are not used to. After a while things will pick up

Modified

For the dumb wailers quoting and asking questions.

The banks are not there only for savings and granting loans, they are to invest with the monies in real sectors and create wealth through real estate, agriculture and tourism etc. Our banks in the past are experts in money laundry and give bad loans to politians that will never pay back, and paying themselves huge mouth breaking wages thereby strangulating the economy.

Shey na all of una dey clamour for change that time? Una don see am now

They should enjoy the change while it last

the conspirator will suffer too

MMM

Ok

Everything is CHANGING

Why won't dey drop, when they have never been doing real banking.

Only deals upon deals.....nonsense

Back then, they mostly focused Oil business men and government stolen funds, now oil is cheaper than pure water and there's no money to be stolen.

Letntye bankers go back to their textbooks and bring out solutions, they will surely find and all will be well.

An average business man will go to them will a genuine business plann with Willings to pay, they won't back him....them big boys will go and they will empty there treasury, loan that won't be serviced or paid back, simply because the big boy knows one of the directors

Nonsense upon rubbish!

Just watch our people will blame the government, as if no be we still be the government, we nor even serious.

wahala iyaf start

This country is sinking faster than the great titanic ship....i need to bolt .... No one gonna draw me bk

Where are we going in this country GOD lead us and our leaders to d right path

Alright

Okay

Buhari n incompetence r like....who fit epp wit dat zuma pic.

U won't see rusher14 , hungerbad n sarrki on dis thread

Fighal in the kitchen...

My Single dropping soon

veekid:
Shey na all of una dey clamour for change that time? Una don see am now

Oga weting you dey talk,even if Jonathan had won things will be worse than this

May God help our country

Meanwhile, See What This Lady Wore to a Social Gathering in Lagos (Photos)>>http://www.gistpool.co/2016/10/hmmm-see-what-this-lady-wore-to-social.html

Bank is scamming and mmm is paying so why will people leave their money where it depreciates.

Gm evri one..
A thought came across my mind oo..
I was thinking about wrestling ..how will
people who wear pants be fighting for a belt??

Change indeed

Aftr a while, u mean by 2018

brainpulse:
No free corrupt monies anymore. They have to do clean investment Nigeria banks are not used to. After a while things will pick up

sack loading

Drop and losses are the trending words in Maine now

Buhari is badluck and badluck is Buhari. Buhari brought recession and recession brought Buhari

mumu pple everywhere.

pls were in d world do banks no aid corruption, even d banks in Saudi n Vatican all steal.


we Africans steal and stock our money in d European banks which dey give us back as loan or grants with large interest,after we repay d loans dey now give us back our money as show of good will.

so no corrupt money no bank

More good news

brainpulse:
No free corrupt monies anymore. They have to do clean investment Nigeria banks are not used to. After a while things will pick up

How much do you have in your bank account ? Do you think banks print money and invest ? It is people's deposit that they invest in areas needed and make income. When government pulls out all their money in the banks, definitely their investible fund will drop and same with market share.

brainpulse:
No free corrupt monies anymore. They have to do clean investment Nigeria banks are not used to. After a while things will pick up

What is the meaning of this your statement?