BUSINESS NEWS

Banks implement new guidelines on loan recovery

NEWSMAN, Abuja – The implementation of the Global Standing Instruction (GSI) of the Central Bank of Nigeria (CBN) on Deposit Money Banks, enhancing loan recovery across the banking sector has commenced.

Beginning from August 1st, the bankers committee agreed that the GSI will facilitate an improved credit repayment culture; reduce Non-Performing Loans (NPLs) in the banking industry; and watch-listing consistent loan defaulters, while listing sanctions to be meted on banks and Other Financial Institution (OFIs) in case of violation.

According to Financial experts, the implementation would differentiate real wealthy businessmen from debtor businessmen, PUNCH reported.

“The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else”, Former President, Trade Union Congress, Peter Esele said.

 “What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men. Some men are wealthy from running banks down because a lot of the big men are running banks down”, Esele added.

Also President of the United Labour Congress, Joseph Ajaero, stated that “banks that are lending money to people should make sure that they have adequate collateral” to avoid running into problems.

 “Ordinarily, banks cannot on their own go to another bank and take the money that was kept in another bank; they are independent and should operate independently”, Ajaero further said.

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