They are scrambling for credible borrowers, The Nation learnt on Thursday.
The industry average lending rate is around 23 to 26 per cent per annum, but premium borrowers still get credit at 16 to 17 per cent per annum. According to Ufomadu, the focus of the LDR minimum is to promote consumer and mortgage credit to drive demand.She said: “Most Tier 2 banks comply with the new LDR minimum requirement, but not all Tier- 1 banks have complied with the CBN policy and short timeline for the policy implementation remains a challenge.”
Mrs. Ufomadu said the banks are at present, engaging in ‘cautious growth’ lending on government securities. “In the last three to four years, banks have not been bullish in lending. Even the CBN regulation cannot change that reality. Banks are also rejecting expensive deposits and going for low interest deposits.”