Banks Disburse N7trn Loans To Nigerians In 3 years

Commercial banks in Nigeria in the last three years, disbursed over N7 trillion in loans and advances to customers, a feat the Central Bank of Nigeria (CBN) said was achieved through its loans to deposit ratio (LDR) policy.

This was stated by the CBN deputy governor, Financial Systems Stability, Mrs. Aishah Ahmad, yesterday at the 40th anniversary summit of Financial Institutions Training Centre (FITC) in Lagos.

Ahmad noted that the LDR policy which specified that a certain percentage of deposits in banks must go out as loans and commenced in 2019, had seen the level of lending to the economy by banks improve improved significantly.

The CBN had in July 2019 increased the required minimum LDR to 60 per cent and further reviewed it upward to 65 per cent later in the year which has since boosted the real economy as well as increased retail lending to households.

Ahmad noted, “Over the years, the CBN has tried to ensure that we drive lending to the real sector, you would agree with me that the policy under Governor Emefiele over the last few years has really emphasised on this, not only in terms of intervention funds given but in terms of some of the policies put in place such as loan to deposit ratio (LDR) which when we instituted, it in 2019 till now actually added about N7 trillion or so in loans, and which is quite unprecedented.”

On the stability of the banking sector, she said all metrics and indicators point that the banking sector is strong, stable and has been a catalyst towards Nigeria’s recovery. BY BUKOLA IDOWU, Lagos

Commercial banks in Nigeria in the last three years, disbursed over N7 trillion in loans and advances to customers, a feat the Central Bank of Nigeria (CBN) said was achieved through its loans to deposit ratio (LDR) policy.

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