CBN Reduces Loan-to-deposit Ratio To 50%

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to combatting rising inflation through the Loan Deposit Ratio (LDR) strategy.
Adetona Adedeji, Acting Director of the Banking Supervision Department, emphasized this stance in a recent podcast on the CBN Website titled “Loan to Deposit Ratio Adjustment.”
Adedeji explained that the decision to adjust the LDR, reducing it from 65% to 50%, aims to steer money into the real sector of the economy, aligning with the CBN’s strategy to balance monetary policy tools and other measures to address inflation effectively.
The CBN’s approach involves reducing the money supply to stabilize prices, ultimately aiming to bring down inflation rates, and with this, the CBN aims to curtail inflation while ensuring the financial health of the country.