12 banks fined N499bn for inability to meet loan ratio
The Central Bank of Nigeria (CBN) says 12 banks have been debited N499 billion for failing to give out 60% of their deposits as loans.
The cash reserve of the banks held by the CBN has been debited.
Mahogany Hotel and Suites(Ibadan) 08099887255/ 08083061500
The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.
In July, the CBN had increased the loan to deposit ratio to 60% saying: “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 of the target LDR”.