Just In: CBN to increase banks’ loan to deposit ratio to 70% in 2020

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

CBN Director, Banking Supervision, Mr. Hassan Belllo disclosed this while speaking at the 2019 workshop for Finance Correspondents and Business Editors organised by the Nigeria Deposit Insurance Corporation (NDIC) in Yola, Adamawa State.

Recall that the Apex bank in May introduced 60 percent LDR for banks. The LDR was increased to 65 per cent in September with December 31st 2019 as deadline for compliance.

Vanguard reports that the Director stated that the introduction of the LDR has enhanced credit into the economy.