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CBN directs banks to report credit facilities of N1m in CRMS

By on September 12, 2013

SanusiLamidoThe CBN on Thursday directed banks to report all credit facilities of N1 million and above in their Credit Risk Management System (CRMS).

The CBN, in a circular by the Director of Banking Supervision, Mrs Tokunbo Martins, said that the credit facility should include those given to their board members and staff.

The circular was entitled: ”Reporting all credit facilities of N1 million and above to the Credit Risk Management System”.

It also said that the banks should update the credit facilities on monthly basis.

According to the bank, the CRMS is established as a central database for credit information on borrowers.

The CBN also said that the CRMS, amended under the CBN Act No 24 of 1991 (Sections 28 and 52), made it mandatory for all banks to render returns to it.

“The Central Bank of Nigeria has observed with dismay that banks do not report the credit facilities availed to their board members and staff in the Credit Risk Management System (CRMS).

“Please note that the provisions of Sections 3.4 and 3.5 of the Prudential Guideline for Deposit Money Banks in Nigeria, July 2010, does not preclude banks from reporting credit facilities availed to its board members and staff in the CRMS.

“This Circular serves as a reminder and warning to all banks as any observed breach will attract severe sanctions.” (NAN)