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|50 Debtors Owe 32% Of Bank Loans – Emefiele by atlwireles: 1:08am On Nov 20, 2014|
The Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, on Wednesday disclosed that 50 biggest bank debtors accounted for 32.02 per cent of lenders’ total loans to the private sector as of May 2014.
The governor, who made this known at the second National Credit Bureaux conference in Lagos, however, said the central bank was working towards expanding bank loans to the private sector.
He also said the CBN was committed to punishing fraudulent borrowers.
Emefiele said, “The reform policies of the central bank have gained grip and resulted in a sound financial system. The ratio of Non-Performing Loans to gross loans as of May 2014 stood at 4.24 per cent, 0.76 basis points below the five per cent maximum threshold set.
“We are however yet to see the dispersal in the loan portfolio as the top 50 and 100 obligors account for 32.02 per cent and 41.34 per cent of the gross credit to the private sector.”
The governor further said he was committed to championing policies that promote the sustainability of hard-earned macroeconomic stability, while also enhancing financial access and reduction of cost of credit.
According to him, the CBN will “pursue a zero-tolerance policy on fraudulent borrowers, and improve the credit culture in the banking system by working towards reducing the effect of information asymmetry in the credit market.”
For some years now, he said the CBN had pursued policies which were aimed at stabilising the financial system that had been threatened by unpleasant banking practices such as accretion of toxic assets.
Emefiele recalled that private credit bureaux were established to play the vital role of assisting the CBN in the effective management of credit risk within the banking system.
He noted that credit bureaux had grappled with various challenges notable among which were the absence of a unique identifier, poor quality of data and low compliance levels by financial institutions.
The CBN governor, however, said, “The credit bureaux have continued to record steady increase in the number of records of registered borrowers. From a mere 78,189 in December 2010, the total number grew to 18,640,000 in June 2012. The number as of May 2014 stood at 26,623,156,”
“I want to commend the bureau operators for this feat and charge them not to rest on their oars as we still have more grounds to cover if we must have a robust credit reporting system.
Oits part, he said the CBN was committed to providing the required regulatory support, stating that the central bank had already made it mandatory for all financial institutions to have data exchange agreements with at least two credit bureaux.
He added, “All banks are required to obtain credit reports from at least two credit bureaux before granting any facility to their customers while quarterly portfolio checks must also be carried out to enable them determine borrowers’ current exposure to the financial system. We are currently reviewing compliance levels and in line with our zero tolerance policy for infraction, the appropriate sanctions would be imposed onerring institutions.”
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by Atyodos: 4:18am On Nov 20, 2014|
they should be arrested
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by Nobody: 4:18am On Nov 20, 2014|
Their names please. Man need money to make more money though.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by tit(f): 4:29am On Nov 20, 2014|
To owe na crime?
Do not reason like paupers.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by fitzmayowa: 6:13am On Nov 20, 2014|
I hope our incorruptible general buhari, is not on the list as per say general collect 27million naira loan for form...
*dodges* slap, stone, stick, bottle...
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by idealsico(m): 7:07am On Nov 20, 2014|
Atyodos:Don't read this post upside down. There was nowhere in the report that those loans are not performing. The CBN is only suggesting that loans should be diversified to reach greater number of potential borrowers. Unfortunately, the banks are more comfortable with the big names like the Dangotes, the Otedolas, etc. In order to make it big in business you need more resources than you can raise as an individual. It is not a crime to borrow to fund businesses and projects.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by RockMaxi: 7:13am On Nov 20, 2014|
Well it's their luck and we run a system that encourages such. How can 50 People owe 32% of our Bank's debt portfolio? Possibly they are the friends and cronies of the Banks MDs.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by gramci: 7:47am On Nov 20, 2014|
How can a sane person borrow money from bank to buy form?
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by egift(m): 7:54am On Nov 20, 2014|
Are they servicing the loan as it should, that is what matters.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by Slonge2(m): 8:09am On Nov 20, 2014|
Make them come borrow me 10 billion dollars nw, make I make the number 51.
I promise say I go pay before trumpet sound.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by dridowu: 8:10am On Nov 20, 2014|
Good Morning Nigerians
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by blym4real: 8:32am On Nov 20, 2014|
Not a good one.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by emmalexabl(m): 8:35am On Nov 20, 2014|
And who told you he is sane ??
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by Nobody: 11:42am On Nov 20, 2014|
he borrowed from tinubu to pay back wen he collect first salary..
wat a stupid PR stunt.
|Re: 50 Debtors Owe 32% Of Bank Loans – Emefiele by Nobody: 11:51am On Nov 20, 2014|
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