In a circular signed by Kevin Amugo, Director, Financial Policy and Regulation Department, Central Bank of Nigeria, Other Financial Institutions (OFIs) have been directed to report all credit facilities to the Credit Risk Management System (CRMS).
This process, according to the CBN, is to promote ‘a safe and sound financial system in Nigeria’ and to prevent ‘predatory borrowers from undermining the banking system’.
The statement said in part, “All DFIs (Development Finance Institutions), MFBs (Microfinance Banks), PMBs (Primary Mortgage Banks) and FCs (Finance Companies) are required to report all credit facilities (principal and interest) to the CRMS and to update same on monthly basis. OFIs shall note the Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions.
“To ensure full compliance, OFIs are reminded to conclude the tagging of all live credit files for all individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021.
“Furthermore, the concerned OFIs are advised to acquaint themselves with the Regulatory Guidelines for the Operations of the redesigned CRMS for Commercial, merchant and Non-Interest Banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.”