Nigeria: CBN Tells Banks to Get On Its Central Credit Management Platform

13 April 2021

Abuja — The Central Bank of Nigeria (CBN) has mandated all development finance institutions (DFIs), microfinance banks (MFBs), primary mortgage banks (PMBs) and finance companies (FCs) operating in the country to enrol on its credit risk management system (CRMS).

The apex bank, in a circular yesterday, said the move was part of efforts to promote a safe and sound financial system in Nigeria.

The CRMS was introduced to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

"With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrollment of Other Financial Institutions (OFIs) on the CRMS Platform," the CBN said in the circular that was signed by its director, financial policy and regulation department, Kevin Amugo.

Based on the new circular, Dr Amugo said all DFls, MFBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMS and to update same on monthly basis. The bank said Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions.

"To ensure full compliance, OFls are reminded to conclude the tagging of ALL live credit files for ALL individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021," Amugo said.

He advised the concerned OFls to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRMS for commercial, merchant and non-interest banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.

"Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions," he stated.

More From: Leadership

Don't Miss

AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.