CBN Reviews LDR Target Upwards To 65%; DMBs Required To Attain LDR of 65% By Dec 31, 2019

Regulators
2207 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Tuesday, October 01, 2019 / 12:26PM / By CBN/ Header Image Credit: BC Open Textbooks    

 


Our Letter To All Banks on the above subject dated July 3, 2019, BSD/D1R/GEN/MDD/01/045. refers.

 

1. The Central Bank of Nigeria (CBN) has noted the appreciable growth in the level of the industry gross credit, which increased by N829.40 billion or 5.33% from N15,567.66 billion at end-May 2019. to N16,397.06 billion as at September 26. 2019 following its pronouncements on the above initiative. In order to sustain the momentum and in line with the provisions of our earlier letter. the minimum Loan to Deposit Ratio (LDR) target for all Deposit Money Banks (DMBs) is hereby reviewed upwards from 60% to 65%.

 

2. Consequently, all DMBs are required to attain a minimum LDR of 65% by December 31, 2019 and this ratio shall be subject to quarterly review. To encourage SMEs. Retail. Mortgage and Consumer Lending, these sectors shall be assigned a weight of 150% M computing the LDR for this purpose.

 

3. Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall implied by the target LDR.

 

4. DMBs are required to continue to strengthen their risk management practices particularly with regards to their lending operations.

 

5. The CBN shall continue to review developments in the market with a view to facilitating greater investment in the real sector of the Nigerian economy whilst promoting a safe. sound and resilient financial system.

 

This letter is with immediate effect.

Proshare Nigeria Pvt. Ltd.


 

Proshare Nigeria Pvt. Ltd.

 

Related News on Banking Sector

1.      Banks' H1 2019 Numbers: Top Line Growth, Bottom Line Uncertainty - Sep 22, 2019

2.     Banking Sector Update - Latest Cashless Initiative Largely Positive For Banks - Sep 18, 2019

3.     Nigerian Banking Sector Recovery Still Hampered By Bad Loans - Jul 29, 2019

4.     Banking Sector Update - Reviewed SDF Guidelines: Clear Intent; Minor Impact - Jul 12, 2019

5.     CBN Delivers Another News On Standing Deposit Facility of Nigerian Banks - Jul 11, 2019

6.     CBN Issues Guidelines on Accessing Standing Deposit Facility; Effective Thursday July 11, 2019 - Jul 10, 2019

7.     CBN Releases Modalities For The Implementation of The Creative Industry Financing Initiative - Jul 05, 2019

8.     DMBs No Longer Require Prior Approval From CBN To Offer Mobile Money Wallet Services - Jul 05, 2019

9.     CBN’s New Minimum LDR Requirement May Worsen NPLs - Jul 04, 2019

10.  CBN Mandates DMBs To Maintain Loan To Deposit Ratio Of 60% Effective Sept 30, 2019 - Jul 04, 2019

11.   Banking Sector Records 557.08m Volume of Transactions in Q1 2019 - NBS - May 31, 2019

12.  The Many Headaches Of Keystone Bank - Underlying Pressures Persist - Mar 31, 2019

13.  PDF: Heritage Bank - The Game Is Up: Time For A New Player With A Market GamePlan - Mar 2019

14.  Nigeria: Macro-Economic and Banking Sector Themes For 2019 - Jan 28, 2019

15.  How The Rules of The Game Are Changing in Africa’s Banking Sector - Oct 28, 2018

16.  Afrinvest Banking Sector Report Sets Agenda for New Government - Oct 17, 2018

17.  FSDH Research Forecasts a Growth in the Banking Sector Credit to Private Sector - Apr 03, 2018

18.  PDF: FBNH Performance Assesment Report 2017 H1 20171018 - Jun 2017

19.  PDF: Analysing the Performance of FBN Holdings Plc - Mar 2017

20. Application of International Standard on Auditing (ISA) 701 in the Banking Sector - Feb 06, 2017


Proshare Nigeria Pvt. Ltd. 

 

Related News On H1 2019 Corporate Results 

  1. ACCESS Declares N63.03bn PAT in Q2 2019 Results; Proposes 25k Interim Dividend,(SP:N6.45k) - Sep 06, 2019
  2. UBA Declares N56.74bn PAT in Q2 2019 Results; Proposes 20k per share Interim Dividend,(SP:N5.85k) - Aug 30, 2019
  3. FIDELITYBK Declares N13.69bn PAT in Q2 2019 Results (SP:N1:66k) - Aug 30, 2019
  4. STANBIC Declares N36.25bn PAT in Q2 2019; Proposes N1.00 Interim Dividend,(SP:N35.00k) - Aug 28, 2019
  5. ZENITHBANK Declares N88.88bn PAT in Q2 2019 Results SP:N16.00k - Aug 20, 2019
  6. GUARANTY Declares N99.13bn PAT in Q2 2019 Results; Proposes N0.30kobo Interim Dividend,(SP:N25.75k) - Aug 16, 2019
  7. STERLNBANK Declares N5.66bn PAT in Q2 2019 Results,(SP:N2.24k) - Jul 31, 2019
  8. UNITYBNK Declares N967.51m PAT in Q2 2019 Results,(SP:N0.63k) - Jul 31, 2019
  9. UNITYBNK Declares N967.51m PAT in Q2 2019 Results,(SP:N0.63k) - Jul 31, 2019
  10. FBNH Declares N31.72bn PAT in Q2 2019 Results,(SP:N5.65k) - Jul 30, 2019
  11. UBN Declares N11.85bn PAT in Q2 2019 Results,(SP:N6.85K) - Jul 30, 2019
  12. FCMB Declares N7.53bn PAT in Q2 2019 Results, (SP:N1.65k) - Jul 29, 2019
  13. WEMABANK Declares N2.25bn PAT in Q2 2019 Results,(SP:N0.62k) - Jul 29, 2019
  14. ETI Declares N59.49bn PAT in Q2 2019 Results, (SP:N9.00k) - Jul 26, 2019


Proshare Nigeria Pvt. Ltd.

 

Related Links On Banks IR Page in Proshare MARKETS

  1. Access Bank Plc
  2. ETI Plc
  3. Fidelity Bank Plc
  4. FBN Holdings Plc
  5. GTBank Plc
  6. Stanbic IBTC Holdings Plc
  7. UBA Plc
  8. Union Bank Plc
  9. FCMB Group Plc
  10. Sterling Bank Plc
  11. Unity Bank Plc
  12. Wema Bank Plc
  13. Zenith Bank Plc

 

Related Links on Banks H1' 2019 Financial Reports 

  1. Report for the Period ended 30th June 2019 - ACCESS Plc - Sep 06, 2019
  2. Report for the Period ended 30th June 2019 - UBA Plc - Aug 30, 2019
  3. Report for the Period ended 30th June 2019 - Fidelity Bank Plc - Aug 30, 2019
  4. Report for the Period ended 30th June 2019 - STANBIC IBTC - Aug 28, 2019
  5. Report for the Period ended 3oth June 2019 - ZENITHBANK Plc - Aug 20, 2019
  6. Report for the period ended 30th June 2019 - GTBANK Plc. - Aug 16, 2019
  7. Report for the Period ended 30th June 2019 - STERLNBANK Plc - Jul 31, 2019
  8. Report for the Period ended 30th June 2019 - UNITYBNK Plc - Jul 31, 2019
  9. Report for the Period ended 30th June 2019 - FBNH Plc - Jul 30, 2019
  10. Report for the Period ended 30th June 2019 - UBN Plc - Jul 30, 2019
  11. Report for the Period ended 30th June 2019 - FCMB Plc - Jul 29, 2019
  12. Report for the Period ended 30th June 2019 - WEMABANK Plc - Jul 29, 2019
  13. Report for the Period ended 30th June 2019 - ETI Plc  - Jul 26, 2019

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

READ MORE:
Related News
SCROLL TO TOP