OMG! Shareholders finally react to CBN’s directive on non-performing loans

In order to improve corporate governance and lower exposure to credit risk, the Central Bank of Nigeria required bank directors who had non-performing insider-related debts to quit their jobs right immediately. This decision has garnered approval from several banking industry experts and shareholders.

On Monday, the apex bank had issued a circular, signed by Dr. Adetona Adedeji, Acting Director of Banking Supervision, requiring adherence to insider-related credit restrictions as outlined in Section 19 of the Banking and Other Financial Institutions Act, 2020.

In addition to starting recovery measures on outstanding debts, which include seizing collateral and liquidating the affected directors’ shareholdings, it instructed banks to make sure that directors with non-performing loans resign right away.

Speaking on the directive, Marcel Okeke, the former top economist at Zenith Bank, bemoaned the fact that insider loans had turned into a problem that needed to be fixed.

He said,

Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, praised the move as well, stating that the apex bank should implement this section of the BOFIA at this time.

He said,

The President of the Pragmatic Shareholders Association of Nigeria, Bisi Bakare, said,

CBN banks to publish details of dormant accounts

TimesNow.com.ng reported that The Central Bank of Nigeria (CBN) has directed Access Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and other financial institutions to publish details of dormant accounts and unclaimed funds.

The apex bank gave the directive in a circular titled Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria released on its website on Tuesday, February 18.

According to the circular signed by Michael C. Akuka for the Director of Financial Policy and Regulation Department, banks must publish this information on their official websites, while financial institutions without websites must use their association’s platform.

Source: TimesNow.com.ng

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