Monday, April 03, 2018 /10:25
AM / CBN
The availability of secured credit to households
increased in Q1 2018 and was expected to increase in the next quarter.
Favorable economic outlook was the major factor for the increase in the secured
Lenders reported that the availability of
unsecured credit to households increased in Q1 2018, and this is also expected
in Q2 2018. Most lenders adduced favorable economic outlook to this increase.
The overall availability of credit to the
corporate sector increased in Q1 2018 and was expected to increase in the next
quarter. Favorable economic outlook was the major factor contributing to the
Demand for secured lending for house purchase
decreased in Q1 2018. However, more lenders expect demand for secured lending
to increase in the next quarter. The proportion of loan applications approved
increased despite lenders’ tightening of credit scoring criteria. Demand for
total unsecured lending from households increased in the current quarter, but
was expected to decrease in the next quarter.
Due to lenders stance on tightening the credit
scoring criteria, the proportion of approved unsecured loan applications
decreased in the current quarter, but was expected to increase in the next
Lenders reported increased demand for corporate
credit across all firm sizes in Q1 2018. This is also expected across all firm
sizes in the next quarter.
Secured loan performance, as measured by default
rates, worsened in the review quarter. However, lenders expect lower default
rates in the next quarter. Total unsecured loan performance to households, as
measured by default rates, deteriorated in Q1 2018 but is expected to improve
in the next quarter.
Corporate loan performance improved across all
sizes of firms in the current quarter, except for small businesses. Lenders
generally expect lower default in the current quarter.
Lenders reported that the overall spreads on
secured lending rates on approved new loans to households relative to MPR
narrowed in Q1 2018, and was expected to remain narrow in the next quarter.
The spreads on overall unsecured lending narrowed
in Q1 2018 and were expected to remain same in the next quarter. Changes in
spreads between bank rates and MPR on approved new loan applications to all
firm sizes widened in Q1 2018.
However, this is expected to widen for all firm
sizes in the next quarter, except for small businesses.
Full Report Here
- Roles Of
Consumer Protection And Small Business Access To Credit In Financial
Credit Bureaus, Telcos, Discos and Others Can Enhance Ease of Doing
- All You
Need To Know About Credit Bureaus in Nigeria
- Some Space
for Lending Growth Ahead
Reports On Credit Rating Agencies, Recommends Changes
Improvement in Credit Extension Ahead
Approach to Credit Extension
- CBN Moves
to Open More Opportunities with Collateral Registry