LDR: Now that Nigerian banks will compete to lend to you, customers

Discussion forum for issues and topics relating to bankers and everyone involved in banks and banking: customers, regulators, others.
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Erudite
Senior
Location: Naija
 

October 7th, 2019, 6:52 am

Last week, the CBN sanctioned 12 Nigerian banks for failure to meet the Loan-to-Deposit ratio LDR deadline. The apex bank had earlier instructed the DMBs to lend to the real sector in order to revive our economy.
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Traditionally, these banks have been declaring exorbitant profits while the real sector was dying. With this move by the CBN, the real sector with be flushed by loan offers by these banks.

What implications?
The customers have better bargaining power! The banks will compete now among themselves to book quality risk assets!

As a customer, you must make good use of this opportunity. Negotiate better. Compare offers from many banks and go for only the best deal.

Gone are those days when accessing credit was tougher than anything.

Not only are the banks competing among themselves. The micro credit companies are also competing for their own share of the pie.

This I believe will help the real sector grow as there will be enough funds to drive business.

CBN's job is not finished!
Dear CBN, there's still work to do. These lending still come at high rates. You must regulate the market so that customers will not surfer. Currently, some banks offer between 20 and 26%. That's too high.

1. Kindly lower the MPR so that the cost of funds to the banks will be lower and they will be able to lend at cheaper rates to the customers.

2. Monitor the risk asset market to be sure banks are not ripping off their customers. Monitor the lending rates and regulate the market

3. Make CBN/FGN funds available and easily accessible. These intervention funds come at single digit rates and are the cheapest for now. Make them not only available but also accessible.


With these, we will see a huge leap in out GDP within 12 months.

Cheers.

Please share...

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eMade
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Location: Abuja
 

October 7th, 2019, 7:02 am

:thnk: That's true.
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simpl2
Senior
 

October 7th, 2019, 9:25 pm

And thou shalt not take every loan that comes your way. :excited:
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eMade
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Location: Abuja
 

October 8th, 2019, 4:52 am

Simpl2 wrote:And thou shalt not take every loan that comes your way. :excited:
Truly some loans are booby traps. :mrgreen:
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Hope alive

October 9th, 2019, 10:51 am

Simpl2 wrote:And thou shalt not take every loan that comes your way. :excited:
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