{"id":26179,"date":"2024-04-08T15:04:48","date_gmt":"2024-04-08T15:04:48","guid":{"rendered":"https:\/\/nigerdeltanews.ng\/cbn-stops-foreign-currency-denominated-collaterals-for-naira-loans\/"},"modified":"2024-04-08T15:04:48","modified_gmt":"2024-04-08T15:04:48","slug":"cbn-stops-foreign-currency-denominated-collaterals-for-naira-loans","status":"publish","type":"post","link":"https:\/\/nigerdeltanews.ng\/cbn-stops-foreign-currency-denominated-collaterals-for-naira-loans\/","title":{"rendered":"CBN stops foreign currency-denominated collaterals for Naira loans"},"content":{"rendered":"<div>\n<p>The Central Bank of Nigeria, CBN, has prohibited the use of Foreign Currency-denominated collaterals for Naira loans by all Nigerian banks.<\/p>\n<p>The apex bank disclosed this on Monday in a letter to all commercial banks signed by its Director Banking Supervision Department, Adetona Adedeji.<\/p>\n<p>However, the new guidelines gave exception to Eurobonds issued by the Federal Government of Nigeria and Guarantees of foreign banks, including Standby Letters of Credit.<\/p>\n<p>\u201cThe Central Bank of Nigeria has observed the prevailing situation where bank customers use Foreign Currency (FCY) as collaterals for Naira loans.<\/p>\n<p>\u201cConsequently, the current practice of using foreign currency-denominated<br \/>\ncollaterals for Naira loans is hereby prohibited, except, where the foreign currency collateral is: Eurobonds issued by the Federal Government of Nigeria; or Guarantees of foreign banks, including Standby Letters of Credit.<\/p>\n<p>\u201cIn this regard, all loans currently secured with dollar-denominated collaterals other than as mentioned above should be wound down within 90 days, failing which such<br \/>\nexposures shall be risk-weighted 150 per cent for Capital Adequacy Ratio computation, in addition to other regulatory sanctions,\u201d CBN stated.<\/p>\n<p>The development comes in the wake of the recently announced minimum capital requirements for all banks.<\/p>\n<p>For months, CBN\u2019s governor, Olayemi Cardoso had continued to roll out policies to defend the Naira and Nigeria\u2019s economy.<\/p>\n<p>CBN stops foreign currency-denominated collaterals for Naira loans<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Central Bank of Nigeria, CBN, has prohibited the use of Foreign Currency-denominated collaterals for Naira loans by all Nigerian&hellip;<\/p>\n","protected":false},"author":1,"featured_media":26180,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4161,4274,939,15,761],"tags":[519,63,764,943,180,762],"class_list":["post-26179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-cbn","category-naira","category-news","category-top-headlines","tag-business","tag-cbn","tag-headlines","tag-naira","tag-news","tag-top"],"_links":{"self":[{"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/posts\/26179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/comments?post=26179"}],"version-history":[{"count":0,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/posts\/26179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/media\/26180"}],"wp:attachment":[{"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/media?parent=26179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/categories?post=26179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nigerdeltanews.ng\/wp-json\/wp\/v2\/tags?post=26179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}