No commercial bank can offer long-term loans now
Lagos - Mr Okorofor Ugochukwu, the Head of Corporate Communications at CBN, says no commercial bank in the country has the capacity to give long-term loans for now.
Ugochukwu on Thursday in Lagos said that the nature of their funds would not allow such transactions.
“By the nature of their funds, commercial banks for now cannot give long-term loans
“Until depositors begin to offer long-term deposits, the banks will not be in the position to give long-term loans.
“The banks are careful of long-term transactions in case the depositors call for their deposits,” he said.
Ugochukwu urged those seeking long-term loans from commercial banks to approach other financial institutions.
He said that any bank that offered a long-term loan would be taking a risk because depositors could come for their deposits anytime.
Ugochukwu said that banks must be sufficient liquid to meet their obligations.
He added that any bank that lacked enough funds might be in trouble should the depositors called for their money. (NAN)