No Hiding Place For Banks Debtors

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The Central Bank of Nigeria (CBN) and the Bankers Committee on Monday August 26, 2019, came up with a clause that will make it difficult for any banks borrower to escape not paying his or her debt to their lender. CBN Deputy Governor in charge of Financial System Stability (FSS) Mrs Aisah Ahmed disclosed this to financial journalist at the end of 345 meeting of the committee in Lagos.

Just as a mortgage guarantee company will be set up to derisk primary mortgage institution that will lend to mortgage seekers. According to her any bank borrower has to fill a form which will instruct the lender to debit any money found in the borrowers accounts in another bank in case of default. She said customers Bank Verifications Number (BVN) will be used to track the accounts of such defaulting customers.

Stressing that the new clause will encourage banks to increase lending to customers and reduce the level of Non Performing Loans (NPL) in the banking sector. Other area of focus which was handled by the Managing Director of Access Bank Plc, Mr Herbert Wigwe is the support to the creative sector.

He said the bankers committee is starting with a pilot scheme in collaboration with the Lagos State government before the end of 2019. The attention will be on Nollywood, fashion and music. The Managing Director of Guaranty Trust Bank Plc, Segun Agbaje on his part said attention will also be on consumers’ credit lending to drive growth in the economy.

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