Following an earlier warning to chronic bank debtors in the country to pay up their debts, the Central Bank of Nigeria (CBN) on Friday directed deposit money banks (DMBs) to publish the list of delinquent borrowers whose debts have remained non-performing in at least three national daily newspapers from the end of July this year.


The banking sector regulator explained that the move is to halt the rising trend of non-performing loans (NPLs) in the industry and also ensure that the industry NPL ratio does not exceed the prudential limit of five per cent. Presently, the industry NPL ratio stands at 3.3 per cent.

The Apex bank gave the directive in a letter dated April 22, 2015 and addressed to all banks and discount houses. The letter titled: “Recovery of Delinquent Credit Facilities,” was signed by the Director, Banking Supervision, CBN, Mrs. Tokunbo Martins.

According to the CBN, banks and discount houses are required with effect from May 1st 2015, to give the delinquent debtors three months of grace to turn their accounts from non-performing to performing status, after which their names would be published. The delinquent debtors, for both individual and corporate accounts, are those whose accounts have been classified lost and the names include the persons, entities, directors, subsidiaries and other related parties.


According to the Apex bank, those affected would be banned from participating in the Nigerian foreign exchange market and also from participating in the Nigerian government securities market. Martins had earlier this month said the decision to publish the list of bank debtors was to prevent another banking crisis.

The central bank director had explained: “The CBN has managed to keep the banking industry safe and sound in collaboration with all members of the Bankers’ Committee. “But some data shows that it is increasingly becoming difficult for some debtors to pay up their loans. So it was decided that going forward, one thing that we may do is to stop them from getting access to foreign exchange. This is to ensure the continuous safety and soundness of the banking industry

“It is not all debtors, it is the bad and chronic debtors, those ones that have deliberately refused to pay; those are the ones we are talking about. Total loans in the industry are in the region of N13 trillion,” she added.

http://www.thisdaylive.com/articles/cbn-orders-banks-to-publish-names-of-debtors-from-end-of-july/207716/

Can't they be taken to court if they don't want to pay

Ghen ghen
My papa dey owe bank oo, looking forward to see his name in the newspaper

let's wait and see

I am not fully in support of this. Publishing the name of an unknown debtor might just be a newspaper waste of space because no one cares.

ok..done with washing..back to read and comment....pls they should also publish names of those they owe...my name should be there....

otijah:
Ghen ghen

My sentiments exactly.

Pls I will appropriate a summary

OK.....good move because my name is not there

spicytayomic:
....

DrWise:
t

bobcharly:
bookd

bright007:
OK.....

RickRichards:
.

denkyw:
good

Hail to the members of the Space Bookers Confraternity!

The members of the Board of the First National Nigerian Space Bookers Lending and Depository Bank.!

Why not today...? Publish today so that they can comply before July 2015.

CBN is preparing the economy ahead of Buhari's inauguration.

Nonsense .....

What can we gain from this ?





Just aswer.........No bashing

Ooook

Hammefeez:
What can we gain from this ?





Just aswer.........No bashing

Fiscal discipline...plus it is illegal to refuse to pay back the loan.

how does this bring back the money, this is inconsequential

Publish names and eureka!!! Monies are repossessed. Ingenious.

all dis, @ dis tym wey Buhari wan take ova abi

Is the most useful part of that BVN (ban verification number) all cooperate account holders ar nw providing their BVN numbers, so asto use. It to track down their other banks transactions
Its A good move

What nonsense. What happened to the legal and institutional framework for matters like these?

why

Okay...baba is claiming badt guy,mk gmb catch u 1st

CBN trying to clear their own sh**ts before may 29...#stillobserving

some dead people's name will even appear on the list

heads will roll

lol

bushdoc9919:


Fiscal discipline...plus it is illegal to refuse to pay back the loan.

Tell that to Bankers............. I said, What can "We" i mean we, we naaa.....you No understand?

#OrdinaryNigerians

Every Agency forming Jack Bauer at the 11th hour. Anyways like Diezanis impending incarceration , this move is better Late than never

ha. Buhari name go come our o

Good help my country, what good will that do. Pls get real CBN. quote author=Adesiji77 post=33084609]Following an earlier warning to chronic bank debtors in the country to pay up their debts, the Central Bank of Nigeria (CBN) on Friday directed deposit money banks (DMBs) to publish the list of delinquent borrowers whose debts have remained non-performing in at least three national daily newspapers from the end of July this year.


The banking sector regulator explained that the move is to halt the rising trend of non-performing loans (NPLs) in the industry and also ensure that the industry NPL ratio does not exceed the prudential limit of five per cent. Presently, the industry NPL ratio stands at 3.3 per cent.

The Apex bank gave the directive in a letter dated April 22, 2015 and addressed to all banks and discount houses. The letter titled: “Recovery of Delinquent Credit Facilities,” was signed by the Director, Banking Supervision, CBN, Mrs. Tokunbo Martins.

According to the CBN, banks and discount houses are required with effect from May 1st 2015, to give the delinquent debtors three months of grace to turn their accounts from non-performing to performing status, after which their names would be published. The delinquent debtors, for both individual and corporate accounts, are those whose accounts have been classified lost and the names include the persons, entities, directors, subsidiaries and other related parties.


According to the Apex bank, those affected would be banned from participating in the Nigerian foreign exchange market and also from participating in the Nigerian government securities market. Martins had earlier this month said the decision to publish the list of bank debtors was to prevent another banking crisis.

The central bank director had explained: “The CBN has managed to keep the banking industry safe and sound in collaboration with all members of the Bankers’ Committee. “But some data shows that it is increasingly becoming difficult for some debtors to pay up their loans. So it was decided that going forward, one thing that we may do is to stop them from getting access to foreign exchange. This is to ensure the continuous safety and soundness of the banking industry

“It is not all debtors, it is the bad and chronic debtors, those ones that have deliberately refused to pay; those are the ones we are talking about. Total loans in the industry are in the region of N13 trillion,” she added.

http://www.thisdaylive.com/articles/cbn-orders-banks-to-publish-names-of-debtors-from-end-of-july/207716/[/quote]

denkyw:
how does this bring back the money, this is inconsequential

Not really. You'd be surprised to find out the chronic debtors are the known rich in the society. And that the chronic debtor companies are the very big companies. Why won't they pay up, they just making banks suffer and causing bankers to lose their jobs. Because as a banker, you're at risk if big loans you facilitate go bad