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No more hiding for bank debtors, as CBN sets deadline

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The Central Bank of Nigeria (CBN) has set a deadline for Other Financial Institutions (OFIS) to enroll their customers into Credit Risk Management System (CRMS).

OFIS includes Microfinance Banks, (MFBS) Development Finance Institutions (DFIS), Primary Mortgage Banks (PMBS) and Finance Companies (FCS).

CRMS is the practice of mitigating losses by understanding the adequacy of a bank’s capital and loan loss reserves at any given period. With this, the CBN and other financial institutions would be able to track any bank debtor, to know if such debtor is owing another institution.

CBN in a circular published on its website called on OFIs to ensure that all customers details are linked before Monday, 20 June 2022.

Read also: Bank debtors not blacklisted, says CBN

The Cirular reads: “All OFls are reminded to ensure that all their customer accounts comply with the 10-digit Nigeria Uniform Bank Account Number (NUBAN) format, are tagged with Bank Verification Number (BVN) or Taxpayer Identification Number (TIN) for individual and non-individual accounts respectively of the account holder and profiled on NIBSS’ Industry Customer Accounts Database (ICAD) not later than June 20, 2022.”

“These remain prerequisites for the enrollment onto the CRMS.”

The CBN added that it would monitor compliance with the requirements of the circular and non-compliance will attract appropriate sanctions.

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