Central Bank of Nigeria (CBN) says it will increase the cash reserve ratio (CRR) of banks that refuse to meet the minimum lending
threshold to customers to 50 per cent as from September 30, 2019.
The bank has reduced its one-year MCLR, the benchmark against which most customer loans such as auto, personal and home loans are priced or the minimum lending
rate, to 8.95 percent.
GBS, as a regulated bank, is obliged to comply with the minimum lending
standards as set by the Australian Prudential Regulatory Authority, which are broadly consistent with market standards.
The Royal Monetary Authority (RMA) revised the single Minimum Lending
Rate (MLR) from 6.51% to 6.52% in December last year.
The base rate or the minimum lending
rate of the bank is 9.3 per cent.
P UBLIC sector banks ( PSBs) Punjab National Bank ( PNB), Bank of Baroda ( BoB) and Oriental Bank of Commerce ( OBC) reduced base, or minimum lending
, rates by up to 0.40 per cent on Wednesday, which will bring down EMIs on home and car loans.
The base rate, or the minimum lending
rate, is used to price loans.
As at the end of 2014 OAB has exceeded the minimum lending
to SME required by CBO.
The minimum term is usually five years but PS10,000 may be below some lenders' minimum lending
After the announcement, HDFC Bank was the first to increase its minimum lending
rate, called the base rate, by 20 bps to 10%.
Sakthivel opined that as the base rate is the minimum lending
rate, pre-shipment and post-shipment export credit in Indian Rupee has to be given at the Base Rate itself.