The Central Bank of Nigeria has directed Other Financial Institutions (OFIs) to enroll on its Credit Risk Management System (CRMS).
The targeted OFIS include including Microfinance Banks (MfBs), Discount Houses, Finance Companies, Bureaux De Change (BDCs, among others.
The policy shift is expected to enable them grant better loans to customers are reduce the level of non-performing loans in the sub-sector.
Many operators are already working to see they meet the August 1, 2022 compliance deadline to avoid regulatory sanctions.
CBN Director, Financial Policy and Regulation Department, Chibuzo Efobi in report posted on the CBN’s website titled: “Re: Enrollment of Other Financial Institutions (OFIs) on the Credit Risk Management System (CRMS), said all OFIs were reminded by the apex bank to ensure that their customers’ accounts followed the 10-digit Nigeria Uniform Bank Account Number (NUBAN) format.
CBN said, “All OFls are hereby informed that; the provisions of the Regulatory Guidelines for the Redesigned Credit Risk Management System for Commercial, Merchant, and Non-Interest Banks in Nigeria issued on February 27, 2017 (Ref No. FPR/DIR/GEN/CRM/06/012).
And the Additional Regulatory Guidelines for the operation of the Redesigned CRMS issued on September 10, 2018 (Ref No. FPR/DIR/GEN/CIR/07/007) have become applicable to all OFls.”
The CBN also that “enforcement of Section 3.1(a) of the extant guidelines on CRMS that captures the ‘submit before disbursement’ requirement shall commence on August 1, 2022.”
The apex bank further advised them to tag their customers’ accounts with a Bank Verification Number (BVN) or a Taxpayer Identification Number (TIN) for individual and non-individual accounts, respectively. The account holder must be profiled on the NIBSS Industry Customer Accounts Database (1CAD), according to the apex bank.
” OFIs are to ensure that all their customer accounts comply with the 10-digit Nigeria uniform bank account number (NUBAN) format, and are tagged with bank verification number (BVN) or tax identification number (TIN) for individual and non-individual accounts respectively of the account holder and profiled on the Nigeria Inter-Bank Settlement System’s (NIBSS) industry customer accounts database (CAD) not later than June 20, 2022.
“These remain prerequisites for enrollment onto the CRMS,” CBN said.
CBN further warned that failure to comply with the stipulated timelines would attract appropriate sanctions.