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CBN unveils plans to expand the Global Standing Instruction to Corporate Accounts

Central Bank of Nigeria (CBN) unveils plans to expand the Global Standing Instruction to Corporate Accounts and Micro Finance Banks ( MFBs) to improve Credit Repayment Culture in the Country.

 

CBN Director of Banking Supervision- Mr Haruna Mustapha during a virtual meeting with Financial Correspondents at the weekend disclosed that this is aimed at reducing Non- Performing Loans and promoting the Watch- Listing of chronic Loans Defaulters in the Nigerian Banking System.

 

He explained that under the GSI a Bank client will no longer be able to accept credit from one Bank and refuse to pay back while maintaining other Bank Accounts with sufficient balances to pay off the amount owed.

Represented by the Assistant Director Banking Supervision Department of the CBN- Mr. Adekunle Adeniji, Mr Mustapha noted that the GSI which started with Personal Accounts is gradually extending to Corporate Accounts and Micro Finance Banks.

According to him, the Non- Performing Loans Ratio decreased from six point five eight percent in July 2021 to five point nine percent in August 2021 while the Capital Adequacy Ratio increased from forty-two point two-three percent to fifty-one point two one percent in the same period.

He further reiterated that the fifty billion naira Targeted Credit of the Apex Bank for Households and Small and Medium Enterprises (SMEs) is impacting positively on the Nation’s economy and that the enactment of the Banks and Other Financial Institutions Act ( BOFIA 2020) will strengthen the regulation and resolution architecture for Banks and Other Financial Institutions across the country.

ILE EMEJE

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