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Categories: EconomyInfotech

CBN begins registration of more financial institutions on credit management platform

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The CBN has started the registration of “Other Financial Institutions’’ (OFIs) on its Credit Risk Management System (CRIMS) to improve credit risk management.

“Other Financial Institutions’’ are Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Finance Companies (FCs).

CBN’s Director, Financial Policy and Regulation Department, Kevin Amugo, stated in a circular on Tuesday that with the successful implementation of CRIMS in commercial banks, it was time to accommodate Other Financial Institutions.

He stated that the system was designed to improve credit risks in commercial, merchant and non-interest banks.

Mr Amugo urged all affected financial institutions to report all credit facilities to the platform.

“Accordingly all DFIs, MFBs and FCs are required to report all credit facilities (principal and interest) to the CRIMS and to update same on monthly basis,’’ he stated.

He reminded the OFIs that Bank Verification Numbers and Tax Identification Numbers were the only basis for “regulatory renditions.’’

The CBN director also urged the OFIs to conclude the tagging of all live credit files for all borrowers by May 14.

The guidelines were issued in February and September of 2017.

“Note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,’’ Amugo warned.

(NAN)

Ogugua

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