2009-01-29 | BSD/DIR/CIR/GEN/02/019

Liquidity and Capital Adequacy Ratio Computation

The Central Bank of Nigeria (CBN) has issued a circular regarding the computation and reporting of liquidity ratios for banks in Nigeria. The new guidelines prescribe different formats and adjustments for various types of assets, liabilities, and capital items to be considered in the liquidity ratio computation. The Risk Weighted Assets Ratio (RWAR) is introduced as the basis for calculating the required liquidity ratio, which should not exceed 30% or fall below 25%. Banks are advised to follow the prescribed formats and adjustments when computing their liquidity ratios.

Nigeria

Central Bank of Nigeria

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