Citing the need to avoid sweeping generalisations and examine the context of defaults in its intention to penalise loan defaulting companies and their subsidiaries, the Lagos Chamber of Commerce and Industry (LCCI) has urged the CBN to exercise caution in its efforts to address non-performing loans in the banking sector.
According to the chamber, while it is compelling for the apex bank to address the grave consequences of mounting bad loans, there are varying causal factors for loan default which has to be taken into account in matters of this nature.
Rather than name and shame, the LCCI urged the CBN to explore best global practices in its actions noting that loans are supposed be collaterised and a foreclosure invoked in the event that such loans are not redeemed.
