Nigeria Orders Banks to Loan More Money to Spur Economy

Nigeria Orders Banks to Loan More Money to Spur Economy

Assessment

Interactive Video

Business

University

Hard

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The video discusses the Central Bank's new measures to increase the loan-to-deposit ratio for Nigerian banks, aiming to stimulate economic growth. It highlights the potential impact on major banks like Guaranty Trust Bank and Xenith Bank, which may need to increase lending and face risks of non-performing loans. The Central Bank criticizes banks for relying on government bonds instead of lending to the economy. Inflation and lending risks are also discussed, with concerns about a potential financial crisis. The video concludes with possible bank reactions and the policy's future implications.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What measures are being set by the Central Bank to spur lending in Nigeria?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How have the biggest banks in Nigeria responded to the new deposit ratios?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential risks associated with the banks having to increase their lending?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What has been the Central Bank's complaint regarding the banks' lending practices?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the current inflation rate mentioned in the discussion, and how does it affect the banks' lending decisions?

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