In a letter sent to all banks, and for the second time in three months, the central bank of Nigeria said each bank must attain a new minimum ratio by December 31, 2019.
"all DMBs are required to attain a minimum LDR of 65% by 31 December 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% in computing the LDR for this purpose." the bank said in the letter.
The letter added, "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."
