Bank Credit to Bank Deposits for Nigeria

DDSI04NGA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

56.01

Year-over-Year Change

-39.09%

Date Range

1/1/1960 - 1/1/2021

Summary

The Bank Credit to Bank Deposits for Nigeria measures the ratio of bank credit to bank deposits in the Nigerian financial system. This metric is crucial for assessing the liquidity and health of the Nigerian banking sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Bank Credit to Bank Deposits ratio provides insight into the ability of Nigerian banks to convert deposits into loans and advances. It serves as an indicator of financial intermediation and the overall stability of the banking system.

Methodology

The data is collected and calculated by the World Bank from official sources within Nigeria.

Historical Context

This trend is closely monitored by policymakers, regulators, and analysts to gauge the efficiency and risk profile of the Nigerian banking industry.

Key Facts

  • The ratio ranged from 0.58 to 0.75 between 2010 and 2020.
  • A higher ratio indicates greater financial intermediation capacity.
  • Nigeria aims to maintain a ratio between 0.6 and 0.8 for a stable banking system.

FAQs

Q: What does this economic trend measure?

A: The Bank Credit to Bank Deposits for Nigeria measures the ratio of bank credit (loans and advances) to bank deposits in the Nigerian financial system.

Q: Why is this trend relevant for users or analysts?

A: This metric is crucial for assessing the liquidity, efficiency, and overall health of the Nigerian banking sector, which is a key driver of the country's economic growth and development.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from official sources within Nigeria.

Q: How is this trend used in economic policy?

A: Policymakers, regulators, and analysts closely monitor this trend to gauge the stability and risk profile of the Nigerian banking industry, which informs policy decisions and regulatory actions.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, and there may be some delays in reporting due to the time required for data collection and verification within Nigeria.

Related Trends

Citation

U.S. Federal Reserve, Bank Credit to Bank Deposits for Nigeria (DDSI04NGA156NWDB), retrieved from FRED.