The Central Bank of Nigeria has retained the Loan to Deposit Ratio for the banking sector at 65 per cent, this is according to the latest circular issued to the Deposit Money Banks.
The circular was signed by the Director, Banking Supervision Department, CBN, Ahmad Abdullahi.
The CBN had on July 3, 2019, directed banks to maintain a minimum LDR of 60 per cent by September 30, 2019.
It was raised to 65 per cent in the fourth quarter of last year.
The apex bank in the circular released on Wednesday warned the DMBs against violating the LDR, adding that average daily figures would be applied to assess compliance going forward.
It warned that failure to achieve this target would continue to attract a levy of additional Cash Reserves Requirements of 50 per cent of the lending shortfall of the target LDR on or before March 31, 2020.
The CBN Governor, Godwin Emefiele, had at the Monetary Policy Committee meeting held in November said the LDR which the apex bank imposed on the banks had helped to unlock over N1.16tn funding to the private sector.