The Bankers’ Committee Thursday expressed support for the current efforts by the Central Bank of Nigeria (CBN) to improve credit flow to key sectors of the economy, particularly through the latest initiative on the loan to deposit ratio (LDR).
The committee has also clarified that the N499,175,535,097 deducted by the apex bank from the accounts of 12 banks for their failure to meet the September 30 deadline to maintain 60 per cent LDR, is neither fines nor levies, adding that the monies would be refunded once the banks met the LDR requirements.
The bankers agreed that the apex bank’s directive was in the overall interest of the economy as it would further encourage lending by commercial banks as well as boost aggregate demand.
Addressing journalists shortly after the regular meetings of the committee in Abuja, the Managing Director/Chief Executive, Zenith Bank Plc, Mr Ebenezer Onyeagwu, alongside other chief executives of banks, said the banking industry was in agreement with the CBN particularly on the LDR, which will boost growth of credit in the system. Read more