Deposit Money Banks’ otherwise know as commercial banks have in their combined balance sheets total loans and advances to the domestic economy a total of about N10trillion as of March 2014.This is from the latest CBN quarterly report
Excerpt of the report states that;
“Total loans and advances in the review period showed that total loans and advances of the DMBs to the domestic economy stood at N10tn, representing an increase of N151.0bn or 1.5 per cent above the level recorded in the preceding month,”
The CBN’s Quarterly Statistical Bulletin also revealed that the bank credit to the private sector had increased by N118bn to N11.08tn.
Banks make money when they lend to the economy.