The Central Bank of Nigeria (CBN) has doused fears that its aggressive drive to increase the banking sector’s lending to the private sector will result in a gradual accumulation of non-performing loans (NPLs) in the sector.
The Director, Corporate Communications, CBN, Mr. Isaac Okoroafor, told THISDAY yesterday that with the lending clause introduced recently by the Bankers’ Committee, it would be difficult for habitual loan defaulters to operate in the sector.
With the clause, a lender would be able to recover its loan from the assets of a defaulter domiciled in another bank.
The central bank had last week raised the minimum loan-to-deposit-ratio (LDR) to 65 percent with a December 31, 2019 deadline, up from the 60 percent it had stipulated at the end of September.
Source: Thisday Live. Visit site for full article.
