By Adedapo Adesanya The Central Bank of Nigeria (CBN) has announced a downward review of the loan-to-deposit ratio (LDR) for banks to 50 per cent from 65 per cent to align with the current monetary tightening. The CBN disclosed this in a circular on Wednesday titled Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy, signed by Mr Adetona Adedeji, its acting director of the banking supervision department. The LDR is used to assess a bank’s liquidity by comparing total loans to deposits for the same period, which impacts both liquidity and solvency in the short,
CBN Slashes LDR for Banks to 50% from 65%
