2017-04-12 | BSD/DIR/GEN/LAB/10/009

Review of the Limit on Foreign Borrowing by Banks

Due to the depreciation of the Naira, some Nigerian banks have unintentionally exceeded the regulatory limit for foreign currency borrowings. To address this, the Central Bank of Nigeria (CBN) has advised banks to limit their foreign currency borrowings to 125% of shareholders' funds and to implement risk mitigation strategies, including hedging, subordinated debt structures, and minimum fixed tenors. Banks must also report their FCY borrowings to the CBN monthly.

Nigeria

Central Bank of Nigeria

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