To boost credit risk management, the Central Bank of Nigeria (CBN) has commenced the registration of “Other Financial Institutions” (OFIs) on its Credit Risk Management System (CRIMS).
Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), and Finance Companies are examples of “Other Financial Institutions” (FCs)
Kevin Amugo, the CBN’s Director of Financial Policy and Regulation, disclosed this in a statement issued to newsmen on Tuesday, April 13, 2021, noting that with the effective introduction of CRIMS in commercial banks, it was time to accommodate Other Financial Institutions.
According to him, the scheme was created to increase credit risks in commercial, merchant, and non-interest banks.
Amugo encouraged all concerned financial institutions to notify the platform of its credit facilities.
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“As a result, all DFIs, MFBs, and FCs are expected to report all credit facilities (principal and interest) to the CRIMS and amend the same every month,” he said.
He reminded the OFIs that the only basis for “regulatory renditions” is Bank Verification Numbers and Tax Identification Numbers.
Also, the CBN director urged the OFIs to complete the tagging of all live credit files for all borrowers by May 14, 2021.
He urged concerned OFIs to familiarize themselves with the regulatory requirements for the redesigned CRIMS operations for financial, trader, and non-interest banks.
However, the recommendations were published in February and September of 2017.
“Please be advised that the CBN will track compliance with the provisions of this circular, and non-compliance will result in effective sanctions,” Amugo warned.