The Central Bank of Nigeria has banned debtors of closed banks with non-performing loans of a maximum of N250m from accessing new facilities in any Deposit Money Banks in the country.
The Managing Director/Chief Executive Officer, Nigeria Deposit Insurance Corporation, Mr. Umaru Ibrahim, who made the disclosure in Lagos on Friday, said the CBN took the decision following a request by the NDIC.
As a result, Ibrahim said banks had been notified of the development and NDIC examiners would follow up to ensure strict compliance.
“In view of this challenge being faced by the corporation, I am happy to inform you that following our request, the CBN has barred all debtors of closed banks with non-performing loans of a maximum of N250m from access to new facilities in any deposit money banks,” he said.
“The banks have been notified of this development and I, therefore, wish to rely on NDIC examiners to ensure compliance with this new directive. The names of the debtors will be populated through the CBN’s Credit Risk Management System and approved private sector credit bureaus.”
The NDIC CEO, who spoke in Lagos at the opening of the 2014 Bank Examiners’ conference, said that the rapidly-changing operating environment and the ‘complex’ future of banking had necessitated this year’s conference.
According to him, the NDIC has the task of securing depositors’ money, in addition to ensuring the safety and soundness of the financial system.