Zenith Bank To Slow Loan Growth

Zenith Bank Plc has disclosed its plans to slow loan growth in 2020 after the bank gave out huge credit last year in compliance with the  Central Bank of Nigeria new loan to deposit ratio (LDR) Reuters reports.

The CBN had in 2019 increased LDR for Deposit Money Banks to 65% from 60% and gave December 31, 2019, as the deadline for compliance.

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The apex bank warned that default would attract additional cash reserve requirement of 50% of the lending shortfall.

In compliance, Zenith increased  its loan to customers by 22%, but the bank has said that it will only grow its loan by 2% in 2020.

In 2020 alone, the CBN has debited N600 billion from DMBs, for non-compliance to the LDR directive.

Meanwhile, the CBN also encouraged banks to maintain strong risk practices to minimize the risk level of loans.

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