Central Bank of Nigeria, Research Department.
Loanable funds, Credit risk, Loan-deposit ratio, Liquidity ratio
The paper articulated the issues involved in the determination of cost of funds by banks in Nigeria. Cost of funds is a major factor in the pricing of loanable funds and exerts much influence on the day-to-day decision of banks on extension of credit either in the inter-bank market or to their customers. The study illustrated how the cost of funds is computed by banks, especially from the 1990s when the interest rate was deregulated.
Nwaoba, P. I. (2006). Cost of funds determination by banks in Nigeria. CBN Economic and Financial Review, 44(3), 29-62.