The Nigeria Deposit Insurance Corporation says debtors of closed banks with non-performing loans worth N250 million were barred from access to new loan facilities.
The Managing Director of NDIC, Alhaji Umaru Ibrahim, said this while opening a three-day 2014 Bank Examiners’ Conference on Friday in Lagos.
The conference has as theme: “Sustaining a Safe and Sound Financial System through Effective Banking Supervision.”
The Central Bank of Nigeria in September 2012 published the names of 113 such companies.
The CBN also published the names of a total of 419 directors and shareholders over non-performing loans from commercial banks.
Ibrahim said the CBN gave the directive and that banks had been notified of the development.
He said that already the commercial banks were aware of the sanction as they had been notified.
Ibrahim, however, said that the corporation relied on the bank examiners to ensure compliance with the new directive.
The managing director said that the names of the debtors would be populated through the CBN’s Credit Risk Management System and approved private sector credit bureaus.
He noted that the on-site and off-site examiners were confronted with the challenge of delivering on the corporation’s mandate of bank supervision using best practices.
Ibrahim said that radical reforms had taken place in the banking industry since the last examiners’ conference in 2011.
The NDIC head also said that one of such reforms was the implementation of the risk-based supervision, which led to significant improvement in risk management practices by banks.
Ibrahim said the objective of the conference was to update the examiners’ knowledge and skills on contemporary supervision tools to deliver its bank supervision mandate effectively.
He also said that it would contribute to the safety and soundness of the insured institutions.
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