#NIGERIA CBN directed Banks to publish serial debtors’ names August 1

The Central Bank of Nigeria on Thursday directed all Deposit Money Banks operating in the country to commence the publication of the names of chronic debtors from August 1.

The Director, Banking Supervision Department, CBN, Mrs. Tokunbo Martins, stated....
this while briefing journalists shortly after the 322nd Bankers’ Committee meeting, which was held at the central bank’s headquarters in Abuja.

She was accompanied to the briefing by the Managing Director, United Bank forAfrica Plc, Mr. Phillips Odouza; Managing Director, Unity Bank Plc, Mr. Henry Semenitari; and Managing Director, Ecobank Plc, Mr. Jubril Aku.

Apart from the issue of non-performing loans, other matters discussed at the meeting were the biometric registration of bank customers, liquidity of the foreign exchange market and the credit culture within the banking system.
On the issue of NPLs, Martins said the August 1 date was chosen for the publication of the names of debtors because it would mark the end of the three-month grace period given by the CBN for the debtors to service their debts with DMBs.

She said in a bid to ensure the stability of the financial system, there was a need for the central bank, in collaboration with the DMBs, to keep the non-performing loan portfolio at a minimal level.

For instance, Martins said the banking sector currently had a total loan portfolio of between N13tn and N14tn, noting that about three per cent of this were non-performing.

Going by this figure, the total non-performing loans of the banking sector are in the range of between N390bn and N420bn.


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