CBN Expands Borrowers’ Database, Asks DFIs, PMBs,MFBs To Register On Credit Management System

CBN Expands Borrowers’ Database, Asks DFIs, PMBs,MFBs To Register On Credit Management System
The Central Bank of Nigeria (CBN) has given Microfinance Banks (MFBs), Development Finance Institutions (DFIs), Primary Mortgage Banks PMBs and Finance Companies (FCs) up to May 14, 2021, to ensure full compliance with its Credit Risk Management System (CRMS).
The CBN gave the directive in a circular address to operators in the aforementioned sub-sectors, dated April 8, 2021, which was signed by its Director, Financial Policy and Regulation Department, Dr. Kevin Amugo.
To ensure full compliance, the Apex bank advised the Other Financial Institutions (OFIs) operators to conclude the tagging of all live credit files of individuals and non-individual borrowers with Bank Verification Numbers (BVN) and Tax Identification Number (TIN) respectively, by May 14.
 It explained: “As part of efforts to promote safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve 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 now become expedient to commence the enrolment of OFIs on the CRMS platform.
CRMS was established in 1991 to provide a central database from which consolidated credit information on borrowers could be obtained.
The apex bank said the inclusion of other financial institutions on the system was necessary after recording success with deposit money banks.
CBN said the banks are to provide information on all credit facilities, including principal and interest, on the CRMS.
“Furthermore, the concerned OFIs are advised to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRMS for commercial, merchant and non-interest banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017,” it reads.
“Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions.

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