Don't Miss


Home   >   Business   >   Industries   >   Banking   >   CBN plans credit system to ease access to funds

CBN plans credit system to ease access to funds

By on June 19, 2014

The Central Bank of Nigeria on Wednesday unveiled plans to establish a National Credit Scoring System to enhance access to credit.

The apex bank Governor, Mr. Godwin Emefiele disclosed this while speaking at a seminar on “Rebasing of Nigeria’s economy and implication for Financial Sector Strategy 2020.”

He said since the rebasing of the country’s Gross Domestic Product had revealed the changes in the structure of the economy, there was the need or the apex bank to make funds available to employment-generating sectors.

The sectors, according to him are agriculture, Small and Medium Scale Enterprises, oil and gas, power and health.

The governor said making funds available to these sectors would help address the challenges of youth unemployment and the huge infrastructure gap.

He also emphasized the need to pursue a zero-tolerance policy on fraudulent borrowers, noting that the apex bank would collaborate with commercial banks to significantly improve the credit culture in the Nigerian banking system.

The CBN’s focus, according to him, would be directed at serial debtors who access loans from different banks and default on all of them even when they have the means to pay.

He said, “It is my resolve to hone the CBN development finance agenda by targeting employment-generating sectors like agriculture, SMEs, oil and gas, power and health sectors, aimed at confronting the prostrate productive sectors, the embarrassing youth unemployment and huge infrastructure gap.

“I also reiterated the pursuit of gradual reduction in interest rates and was unequivocal in my stance against any form of depreciation of the Naira but will ensure exchange rate stability in order told build -up and maintain a heathy reserves position.

“As a means of ensuring financial stability, the CBN will pursue a zero-tolerance policy on fraudulent borrowers by enhancing the operation of credit bureaus and to establish a National Credit Scoring System so as to enhance access to credit.”

Emefiele who was represented at the event by the CBN Director of Research department Dr. Charles Mordi also reiterate his commitment to create a central bank that is professional, apolitical and people-focused in character.

He said the rebasing of the economy would afford Nigeria to have a more positive sovereign rating by international rating agencies as well as stimulate investments in key sectors of the economy.

 

 

[Punch]