CBN to raise banks’ LDR to 70%

The Central Bank of Nigeria (CBN) plans to increase the minimum loan to deposit ratio of commercial banks to 70 percent from 65 percent by 2020.

Hassan Bello, the director of banking supervision at the CBN, said this at the 2019 workshop for finance correspondents in Adamawa state.

The CBN is forcing banks to boost lending in a bid to revive weak economic growth.

The International Monetary Fund said last week that the balance sheets of banks would be weak due to the CBN’s aggressive lending push.

Lolade Akinmurele

Ololade Akinmurele a seasoned journalist and Deputy Editor at BusinessDay, holds a crucial position shaping the publication’s editorial direction. With extensive experience in business reporting and editing, he ensures high-quality journalism. A University of Lagos and King’s College alumnus, Akinmurele is a Bloomberg-award winner, backed by professional certifications from prominent firms like CitiBank, PriceWaterhouseCoopers, and the International Monetary Fund.

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