By Babajide Komolafe & Emma Ujah
The Central Bank of Nigeria (CBN) said it will increase the minimum Loan to Deposit Ratio (LDR) of banks to 70 percent by 2020.
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Deputy Director, Financial Policy & Regulation Department, CBN, Hassan Mahmoud, disclosed this while speaking at the 2019 workshop for Finance Correspondents and Business Editors organised by the Nigeria Deposit Insurance Corporation, (NDIC) in Yola, Adamawa State.
Recall that the apex bank in May introduced 60 percent minimum LDR for banks, with the aim of boosting lending to the private sector, especially the small and medium enterprises (SMEs). The ratio was further increased to 65 per cent in September with December 31st 2019 as deadline for compliance.
Bello said the measure has enhanced credit into the economy.
He stated: “The CBN increased the minimum loan-to-deposit ration to encourage banks…
Source: Vanguard Newspaper
