Regulatory Alerts2014-10-17 | BSD/DIR/GEN/LAB/02/032Incessant Request for ISPO by Banks to Lend to States, Local Governments and Community Associations
This letter, addressed to all Nigerian banks from the Central Bank of Nigeria (CBN) and signed by Director of Banking Supervision, A.O. Idris, urges banks to adhere strictly to guidelines provided by Debt Management Office (DMO) regarding lending to government entities and cease from inundating DMO with requests for ISPOs. Banks are warned that failure to follow these guidelines will lead to severe penalties enforced by the CBN.
09-462 36401 October 3, 2014 BSD/DIR/GEN/LAB/02/032 LETTER TO ALL BANKS Dear Sir, RE: INCESSANT REQUEST FOR ISPO BY BANKS TO LEND TO STATES, LOCAL GOVERNMENTS AND COMMUNITY ASSOCIATIONS We refer to a letter dated June 4, 2014 forwarded to all banks by the Debt Management Office (DMO), which specified the guidelines on the above subject. The Central Bank of Nigeria has noted with serious concern that some banks have failed to adhere to the guidelines specified by the DMO in relation to lending to any tiers of government. It is in this regard that we write to direct banks to be guided by the guidelines and all extant laws and regulations on this matter and henceforth, desist from inundating the DMO with requests for ISPOs. Banks are warned to be guided accordingly as the CBN will not hesitate to impose SEVERE penalties on erring banks. Yours faithfully, A.O. IDRIS For: DIRECTOR OF BANKING SUPERVISION