Regulatory Alerts2021-04-09 | FPRD/DIR/PUB/CIR/01/002Circular to Other Financial Institutions (OFIs) on the Commencement of enrollment of All DFIs, MFBs, PMBs and FCs on the CRMS
The Central Bank of Nigeria is requiring all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks, and Finance Companies to report all credit facilities to the Credit Risk Management System (CRMS) on a monthly basis. This is an extension of the CRMS program, which was previously implemented in deposit money banks to improve credit risk management and prevent predatory borrowing practices. Non-compliance with the new requirements will result in sanctions.
Tel: 09-46237401 E-mail:fprd@cbn.gov.ng CENTRAL BANK OF NIGERIA Financial Policy and Regulation Department Central Business District P.M.B. 0187 Garki, Abuja.
FPRD/DIR/PUB/CIR/01/002 April 8, 2021 CIRCULAR TO OTHER FINANCIAL INSTITUTIONS CREDIT RISK ENROLLMENT MICROFINANCE BANKS (MFBs), PRIMARY MORTGAGE BANKS (PMBs) AND FINANCE COMPANIES (FCs)
| MANAGEMENT SYSTEM | (CRMS): | COMMENCEMENT | OF |
|---|---|---|---|
| OF ALL DEVELOPMENT | FINANCE INSTITUTIONS | (DFIs), | |
| MICROFINANCE BANKS (MFBs), PRIMARY MORTGAGE BANKS (PMBs) AND |
As part of the efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system. With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrollment of Other Financial Institutions (OFIs) on the CRMS Platform.
Accordingly, all DFIs, MFBs, PMBs and FCs are required to report ALL credit facilities (principal and interest) to the CRMS and to update same on monthly basis. OFIs shall note that Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions. To ensure full compliance, OFIs are reminded to conclude the tagging of ALL live credit files for ALL individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021.
Furthermore, the concerned OFIs are advised to acquaint themselves with the Regulatory Guidelines for the Operations of the Redesigned CRMS for Commercial, Merchant and Non-Interest Banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.
Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions.
KEVIN N. AMUGO, Ph.D DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT