By Bayo Bernard
Small and Medium Scale Enterprise, SMEs will now be able to obtain more loans from commercial banks in the country if the Central bank of Nigeria succeeds in its quest to get money banks commit more to the small business sector.
The nation’s apex bank has directed banks to raise their Bank’s Deposit Ratio to 65b per cent in its latest move to encourage the growth of SMEs in the country.
It however remains uncertain if the banks will comply with the recent directive.
Recall that the CBN had increased the LDR to 60 percent and given September 30th for banks to comply.
Many banks have not complied with the initial directive, the magazine learned from competent sources in the CBN.
The apex bank has however ratchet up it plans to make sure that the directive is not flouted according to the sources.
The banks have now been given December 31, 2019 for full compliance, a directive from the CBN said.
According to the apex bank, we are“To encourage Small and Medium Enterprises, retail mortgage and consumer lending, these sectors shall be assigned a weight of 150 per cent in computing the LDR for this purpose.’
Meanwhile, some experts told the magazine that it will be inappropriate to try to force banks to lend money despite the fact that exposure to that sector is very high.
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