CBN Commences enrolment of DFls, MFBs, PMBs and Finance Companies in the Credit Risk Management System

The Central bank of Nigeria has commenced the enrolment of Deposit Finance Institutions (DFls), Microfinance Banks (MFBs) , Mortgage Banks otherwise known as Primary Mortgage Banks (PMBs ) and Finance Companies (FCs) operating in the country in the Credit Risk Management System.

In a recent circular issued to OFIs, the CBN noted that “as part of the efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system. With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrollment of Other Financial Institutions (OFls) on the CRMS Platform ”.

Accordingly, all DFls, MFBs, PMBs and FCs are required to report ALL credit facilities (principal and interest) to the CRMS and to update same on monthly basis. OFls shall note that Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions.

To ensure full compliance, it stated that all OFls are 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 OFls are to acquaint themselves with the Regulatory Guidelines for the Operations of the Redesigned CRMS for CorT)mercial, Merchant and Non-Interest Banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.

The CBN will monitor compliance and non-compliance will attract appropriate sanctions.