Banks Provide N860b Credit For Private Sector

• Banks Provide N860b Credit For Private Sector

Deposit Money Banks (DMBs) said, in compliance with the new Loan to Deposit Ratio directive of the Central Bank of Nigeria, they disbursed N860 billion to various sectors of the economy in the third quarter.

Mrs. Mobola Faloye, the Executive Director, Risk, Standard Chartered Bank, made the statement at the end of the Bankers’ Committee meeting held in Abuja on Thursday.

She said, “We talked about the Loan to Deposit Ratio and how it will grow the economy and we see that within that short space of time, we have been able to see N860bn in assets growing which again is very good.

“One of the things that the meeting also reiterated is that we are mindful of the fact that there are some vulnerable sectors that we will be lending to.

“It is important that we mitigate our risks and have what we call a credit clause default clause that allows us to set off the obligations of a defaulting party against any other monies that that defaulting party has in the industry.”

The Central Bank of Nigeria on Wednesday said because of the success recorded with the Loan to Deposit Ratio directive, the apex bank has reviewed and agreed to raise it from 60 percent to 65 percent with December 31, 2019 as the deadline.