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LOAN TO DEPOSIT RATIO
The CBN has issued a fresh circular mandating commercial banks operating in the country to lend out up to 65% of their customer deposits.
As the September 30th deadline set by the Central Bank of Nigeria (CBN) for banks to maintain a 60% minimum loan-to-deposit ratio approaches, reports show thirteen (13) banks in Nigeria disbursed loans to customers to the tune of N15.9 trillion between January and June 2019.
In a bid to encourage Deposit Money Banks' (DMBs) to safely grow the economy, the Central Bank of Nigeria may de-risk the financial markets.
Barely one week after the CBN issued a letter to all Deposit Money Banks (DMBs) to maintain a minimum Loan to Deposit Ratio (LDR) of 60% by Sept. 2019, it has revised the guidelines around the apex bank's SDF.
Several reactions have continued to trail the Central Bank of Nigeria's recent directive ordering all commercial banks within the Nigerian banking industry to maintain a minimum loan to deposit ratio (LDR) of 60% starting from September 2019.
CBN's decision to force bank lending is crushing banking stocks
In order to boost lending to the economy real sector, the Central Bank of Nigeria (CBN) has mandated Deposit Money Banks to lend out 60% of their deposits.
The Central Bank of Nigeria has issued a circular mandating commercial banks to lend up to 60% of the customer deposits.