Coronavirus: CBN Mulls Interest Rate Reduction As Economic Slump Persists

CBN Set to Increase Banks’ Loan to Deposit Ratio to 70 percent by 2020

The Central Bank of Nigeria (CBN) is reportedly set to increase banks’ Loan to Deposit Ratio (LDR) to 70% by 2020.

According to a report published on Vanguard, the disclosure was made by CBN Director, Banking Supervision, Mr. Hassan Belllo while speaking at the 2019 workshop for Finance Correspondents and Business Editors, organised by the Nigeria Deposit Insurance Corporation (NDIC) in Yola, Adamawa State.

According to Bello, the introduction of the LDR has enhanced credit into the economy. Hence, the CBN will move the LDR to 70%.

Recall, in October, the CBN issued a fresh circular mandating commercial banks operating in the country to lend out up to 65% of their customer deposits from the initial 60%.

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