Headlines CBN introduces Regulatory Measures to Improve Lending to the Real Sector By maritimemag April 18, 2024 ShareTweet 0 …Reduces banks’ Loan to Deposit Ratio to 50% By Tayo ABIOLA The Central Bank of Nigeria, CBN has taken measures to improve lending to the real sector of the Nation’s Economy In a circular to Deposit Money Banks the Apex bank reduced the Loan to Deposit Ratio, LDR of banks to 50 per cent from 65 percent. The circular titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy” signed by Acting Director, Banking Supervision Department, CBN, Mr. Adetona Adedeji, the bank said, “Today, the CBN in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy” announced a scale down of the Loans to Deposits Rate (LDR) by 15.0ppts to 50.0% – reversing previous threshold set by the past CBN administration in January 2020. “In our view, this downward review of LDR allows banks to comply with the 45.0% CRR directive, and eases off pressure on the lenders considering the restrictive nature of other CBN directives including the Net Open Position (NOP) ceiling of 20.0% short and 0.0% long. Thus, we believe this policy would enhance the ability of banks to sweat out assets without creating unnecessary risks.” © 2024, maritimemag. All rights reserved.
Headlines “A bet on Nigeria is a winning bet,” Tinubu assures Maersk Line Investment 18 hours ago24 views
Headlines FG Plans flyovers on Lagos-Calabar Road to connect Lekki Port, Dangote Refinery 18 hours ago24 views
Headlines Naira depreciated by 23% in 4 days due to sharp practices — Currency dealers, analysts 18 hours ago23 views
Headlines NPA’s investments in channel navigability and yield results, Onne Port berths large vessel 2 days ago39 views
NPA’s investments in channel navigability and yield results, Onne Port berths large vessel 2 days ago