CBN has reduced deposit money banks’ Loan-to-Deposit Ratio, LDR, to 50 per cent from 65 per cent to boost lending capacity

NIGERIA — The Central Bank of Nigeria, CBN, has reduced deposit money banks’ Loan-to-Deposit Ratio, LDR, to 50 per cent from 65 per cent to boost lending capacity. This is according to a letter by Dr Adetona Adedeji, CBN’s Acting Director of the Banking Supervision Department, addressed to all banks.
Adedeji said the reduction was similar to the Cash Reserved Ratio of banks, which is 45 per cent. He said that the directive was part of measures to deepen monetary policy tightening and improve lending in the real sector of the economy... dailypost.ng