The Central Bank of Nigeria has increased the limit on banks’ foreign currency borrowings to 125 per cent of shareholders’ funds after some banks breached the regulatory limit due to the recent fall in the naira according to a Reuters report.
The new regulation replaces a 2014 rule, capping foreign borrowings, including Eurobonds, at 75 per cent of shareholders’ funds.
This came amid efforts by the CBN to manage widespread capital shortfalls at banks due to the naira crisis and rising bad loans.
