Regulatory Alerts2019-10-11 | BSD/DIR/GEN/LAB/12/054Added · Updated
New Offer Letter Clause for Credit Facilities
The Central Bank of Nigeria has implemented measures to encourage credit growth and improve the economy, resulting in increased credit to the private sector and positive financial indicators. The Bankers Committee has resolved that banks can access and utilize the deposits of defaulting customers to regularize non-performing facilities. The CBN has issued guidelines for banks to include a new clause in credit facility offer letters and loan agreements, allowing banks to set off indebtedness from a borrower's deposits or financial assets in the event of default.
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