The Central Bank of Nigeria has stated that Other Financial Institutions (OFIs) must meet certain requirements set by the apex bank to be registered in the Credit Risk Management System (CRMS).
This was revealed by Mr. Chibuzo Efobi, Director of the Financial Policy and Regulation Department in a circular posted on the CBN website on Tuesday and titled: “Subject: Registration of other financial institutions (AIF) in the credit risk management system (CRMS).”
The apex bank has reminded all OFIs to ensure that their clients’ accounts follow the 10-digit format of the Uniform Bank Account Number of Nigeria (NUBAN).
What the CBN says
CBN said: “All OFl are informed that; the provisions of the Regulatory Guidelines for the Revamped Credit Risk Management System for Commercial, Merchant and Non-Interest Banks in Nigeria issued on 27 February 2017 (ref. FPR/DIR/GEN/CRM/06/012). Additional regulatory guidelines for the operation of the redesigned CRMS published on September 10, 2018 (ref. no. FPR/DIR/GEN/CIR/07/007) are now applicable to all OFl.
The CBN also has that “the application of section 3.1(a) of the existing CRMS guidance which includes the requirement to “submit before disbursement” will begin on August 1, 2022.”
The apex bank further advised them to mark their clients’ accounts with a Bank Verification Number (BVN) or Tax Identification Number (TIN) for individual and non-individual accounts, respectively.
The account holder must be profiled in the NIBSS Industry Client Accounts Database (1CAD) by June 20, according to the apex bank.
What you should know
- On Tuesday, May 24, 2022, the Central Bank of Nigeria suddenly raised its benchmark interest rate for the first time in almost six years to 13% from 11.5% (a rise of 150 basis points).
- The Central Bank of Nigeria has agreed to leave interest rates for its development finance assets or intervention funds at 5% per annum until March 2023.
- The 5% annual interest rate paid by loan recipients amounts to a subsidy, as the loans originally had an annual interest rate of 9%. Even at 9%, the rate is still a bargain compared to commercial bank rates of up to 20% per annum.
- The supreme bank’s decision to keep intervention fund interest rates at 5% reflects its aim to continue encouraging economic growth in the key sectors it finances while allowing rate hikes in others. areas.