Source: CredoLab | Jan 22, 2020

Raising banks’ Loan to Deposit Ratio while minimising risk

The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's total loans to its total deposits for the same period

In developing economies, the key to socio-economic growth is access to finance, but the challenge is to increase loans to individuals and SMEs without suffering the fall-out of bad debt. The Central Bank of Nigeria (CBN) increased the minimum loan-to-deposit ratio (LDR) of commercial banks from 60 percent to 65…