Nigerian central bank pushes for increased lending
Banks must lend money or face higher cash reserve requirements
The Central Bank of Nigeria has ordered the country’s banks to either lend more money or store it in the central bank, in an attempt to stimulate economic growth.
All retail banks will now be have to maintain a minimum loan to deposit ratio (LDR) of 60%, Ahmad Abdullahi, the CBN’s director of banking supervision, said in an official letter on July 4. If banks fail to meet the new requirement by September 30, they will have a levy of an additional cash reserve requirement equal to 50% of the
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