Research Department, Central Bank of Nigeria
Loanable Funds, Credit Risk, Loan - Deposit Ratio, Liquidity Ratio
The article examined the cost of funds as a determining factors in the pricing of a loanable funds that has an influence on day-to-day running of the banks especially in the extension of credit to customer. It highlights how cost of fund was inversely computed by banks instead of the normal method. The finding revealed that high cost of funds is driven by scarcity of loanable funds in the banking system.
Nwaoba I.P. (2006). Cost of Funds Determination by Banks in Nigeria. Economic and Financial Review, 44 (3), 1-34