The Central Bank of Nigeria (CBN), has instructed that all banks in the country should enroll on its Credit Risk Management System (CRMS).
This was disclosed yesterday in a circular signed by its director, Kevin Amugo.
The circular revealed the new development was part of efforts to promote a safer financial system in the country.
The CRMS was introduced to advance credit risk management in commercial, merchant and non-interest banks and also to stop 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,” Kevin Amugo said.
Dr. Amugo stated that all development finance institutions (DFIs), microfinance banks (MFBs), primary mortgage banks (PMBs) and finance companies (FCs) are required to report all credit facilities (principal and interest) to the CRMS and to update same on monthly basis.
He also said Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions. “Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,” he stated.