By Obinna Chima
The Central Bank of Nigeria (CBN) has given Microfinance Banks (MFBs), Development Finance Institutions (DFIs), Primary Mortgage Banks (PMBs) and Finance Companies (FCs) up to May 14, 2021, to ensure full compliance with its Credit Risk Management System (CRMS).
The central bank gave the directive in a circular address to operators in the aforementioned sub-sectors, dated April 8, 2021, which was signed by its Director, Financial Policy and Regulation Department, Dr. Kevin Amugo.
To ensure full compliance, the banking sector regulator advised the Other Financial Institutions (OFIs) operators to conclude the tagging of all live credit files of individuals and non-individual borrowers with Bank Verification Numbers (BVN) and Tax Identification Number (TIN) respectively, by May 14.
It explained: “As part of efforts to promote safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve 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 now become expedient to commence the enrolment of OFIs on the CRMS platform.
Accordingly, all Development Finance Institutions (DFIs), MFBs and FCs are required to report all credit facilities (principal or interest) to the CRMS and to update same on monthly basis. OFIs shall note that BVNs and TIN are the only basis for regulatory renditions.”
