Credit to corporate bodies to increase in 2017, says CBN

The Central Bank of Nigeria (CBN) on Thursday said the overall availability of credit to the corporate bodies was expected to increase further in first quarter of 2017.

The CBN said in the Credit Condition Survey Report, posted on its Website,that the credit to the same sector increased in the fourth quarter of 2016.

The bank attributed the increase in credit availability to some major factors which included changing in sector specific risk and brighter economic outlook.

It said others include: improved liquidity conditions and tight wholesale funding conditions.

The CBN said the demand for secured lending for house purchase increased in fourth quarter of 2016 and was expected to increase further in the next quarter.

“In spite of lenders’ stance in tightening the credit scoring criteria in the current quarter, the proportion of loan applications approved in the fourth quarter of 2016 increased.

“Demand for unsecured credit card lending and overdraft personal loan from households decreased in the current quarter but was expected to increase in the next quarter, ‘’ the apex bank said.

It added that due to lenders’ stance on the tightening in the credit scoring criteria, the proportion of approved households’ total loan applications decreased in the current quarter.

The CBN, however said that it was expected to decrease further in the next quarter.

On demand for secured lending for house purchase, which increased in the fourth quarter of 2016, the bank said it was expected to increase further in the next quarter.