Following the successful implementation of the Credit Risk Management System with deposit money banks, the Central Bank of Nigeria has ordered Other Financial Institutions to integrate the database of borrowers on the platform.
The bank in a circular stated that it is expedient to enrol these institutions on the platform as part of its efforts to promote a safe and sound financial system in the country.
A circular signed by Kevin Amugo, the Director of Financial Policy and Regulation Department of the apex bank, listed the other financial institutions as Development Finance Institutions, Micro Finance Banks, Primary Mortgage Banks and Finance Companies.
It added that the institutions will be enrolled into the system as a means to improve credit risk management across the commercial, merchant and non-interest banks.
The circular further stated that the move by the bank will help prevent predatory borrowers from undermining the Nigerian banking system.
Consequently, all institutions (DFIs, MFBs, PMBs and FCs) concerned have been asked to report all credit facilities to the platform and ensure there is a monthly update of the same information on the platform.
The facility comprises of both principal and interest as the apex bank further demanded that these OFIs conclude the tagging of all life credit files for borrowers (individual and non-individual borrowers) with Bank Verification Numbers and Tax Identification Numbers on or before May 14, 2021.
“With the TIN and BVN being the only basis for regulatory rendition, the CBN has advised that the institutions acquaint themselves with regulatory guidelines for the operations of the redesigned credit risk management system (CRMS) for commercial, merchant and non-interest banks in Nigeria of February 2017 and the addition regulatory guide,” the circular stated.
- Ifeoma Ekeke