Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 39)

The Central Bank of Nigeria (CBN) reviewed upward the minimum Loan to Deposit Ratio (LDR) target for all Deposit Money Banks (DMBs) from 60 percent to 65 percent.1 This is to sustain the momentum gained from a 5.33 percent (N829.40 billion) increase in the industry gross credit between end of May 2019 and 26th September 2019. If Nigerian banks abide by the new regulation, this should translate to increased lending to Nigerian businesses  thereby supporting private sector growth. Regulatory enforcement or incentives may be needed to ensure that banks follow through with the regulation, as many of the biggest banks fell short of the regulator’s initial 60 per cent LDR threshold.

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March 13, 2018 - 4:00 am
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