BREAKING: CBN’s Loan To Deposit Ratio Policy Unlocks N19.3trn From Banks

The Central Bank of Nigeria on Tuesday said that through the implementation of the Loan To Deposit Ratio Policy, credit provided by banks to the economy had increased by N3.77trn from N15.57trn in May last year to N19.3trn as of the end of August this year.

The CBN Governor, Mr Godwin Emefiele gave the figure while speaking on the outcome of the two day Monetary Policy Committee meeting held at the CBN headquarters in Abuja.

Advertisement

The CBN had on July 3, 2019, directed banks to maintain a minimum LDR of 60 per cent by September 30, 2019.

The LDR, which is being reviewed quarterly to improve lending to the real sector, was 58.5 per cent as of the end of May.

It has now been raised to 65 per cent for the last quarter of last year.

Emefiele said through the policy, the banks have been able to provide funds for key sectors of the economy.

Advertisement

For instance, he said during the period, the manufacturing sector got N866bn, consumer credit N527.6bn, oil and gas N477bn, agriculture N287bn and construction N270bn.

Details later…

Leave a comment

Advertisement