The Central Bank of Nigeria (CBN) has disclosed that in the third quarter of 2018, availability of credit to the corporate sector increased, saying that it expected to increase in fourth quarter.
The CBN made this known in its 2018 Third Quarter Credit Conditions Survey Report released by its Statistics Departed and posted on its website.
It stated that this was driven by changing sector-specific risks, favourable economic conditions, improved liquidity conditions, market share objectives and changing appetite for risk.
[penci_blockquote style=”style-2″ align=”none” author=””]“Availability of credit increased for all business sizes in third quarter 2018. Lenders expect the same trend in the next quarter,” the bank said.[/penci_blockquote]
According to the CBN report, the prevailing commercial property prices negatively influenced credit availability in the commercial real estate sector in the current quarter.
“The prevailing commercial property prices to positively influence secured lending to Public Non-Financial Corporations (PNFCs) in the current quarter.
“Availability of credit increased for all business sizes in third quarter 2018. Lenders expect the same trend in the next quarter,” the bank said.
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The CBN added that spreads between bank rates and MPR on approved new loan applications for all business sizes narrowed in third quarter 2018, but were expected to widen for all business sizes in fourth quarter of 2018.
“The proportion of loan applications approved for all business sizes increased in the current quarter, and are expected to further increase in fourth quarter 2018.
“Lenders required stronger loan covenants from all firm sized businesses in the current and next quarter, ” he said.