CBN Slashes Banks Loan to Deposit Ratio to 50%
The Central Bank of Nigeria (CBN) has reduced deposit money banks (DMBs) loan to deposit ratio requirement to 50% to soften pressures on the operators. Naira Skids as FX Turnover, External Reserve Decline
The apex bank notified banks in a circular titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy”, that it has slashed loan to deposit ratio from 65% to 50%.
The latest move under Yemi Cardoso, the current CBN governor reversed previous threshold set under Godwin Emefiele in January 2020.
Analysts said the downward review of LDR would allow banks to comply with the 45.0% CRR directive, and eases off pressure on the lenders considering the restrictive nature of other directives including the Net Open Position (NOP) ceiling of 20.0% short and 0.0% long. # CBN Slashes Banks Loan to Deposit Ratio to 50%
