• Thu. Feb 2nd, 2023

CBN Informs Other Financial Institutions (IFOs) to Enroll in CRMS by August 1

ByYinka Okeowo

Jun 1, 2022
Read Time:1 Minute, 50 Second

The regulatory guidelines for the redesigned Credit Risk Management System (CRMS) are now applicable to Other Financial Institutions (OFIs), the Central Bank of Nigeria has said.

The provisions of the guidelines were first issued on February 27, 2017, to the commercial, merchant, and non-interest banks.

In a circular obtained by TechEconomy, the CBN said “enforcement of Section 3.1 (a) of the extant guidelines on CRMS that captures the “submit before disbursement” requirement shall apply to all OFIs in August 1, 2022.”

The apex bank through Chibuzo Efobi, Director, Financial Policy and Regulation Department, directed the OFIs to ensure that all their customer accounts comply with the 10-digit Nigeria Uniform Bank Account Number (NUBAN) format and are tagged with Bank Verification Number (BVN) or Tax Identification Number (TIN) for individual and non-individual accounts respectively of the account holder.

The OFIs are further requested to profile the information on the NIBBS’ Industry Customer Accounts Database (ICAD) not later than June 20, 2022.

The CBN stressed that the provision of this data remained the prerequisite for the enrollment onto the CRMS going forward, adding that the circular was further to various engagements with the OFIs with respect to deploying the credit risk requirement.

The bank warned that failure by the OFIs to comply with the stipulated timelines would attract appropriate sanctions.

The CBN had in April 2021 given Microfinance Banks (MFBs), Development Finance Institutions (DFIs), Primary Mortgage Banks (PMBs), and Finance Companies (FCs) up to May 14, 2021, to ensure full compliance with its CRMS.

To ensure full compliance, the banking sector regulator had also advised the OFI operators to conclude the tagging of all live credit files of individuals and non-individual borrowers with BVN and TIN, respectively, by May 14, 2021.

The CBN pointed out that the move was part of efforts to promote a safe and sound financial system in Nigeria through the introduction of the CRMS to improve risk management in all financial institutions to prevent predatory borrowers from undermining the banking system.

It added that with the successful implementation of the CRMS in deposit money banks, it has now become expedient to commence the enrollment of OFIs on the CRMS platform.


0 thoughts on “CBN Informs Other Financial Institutions (IFOs) to Enroll in CRMS by August 1”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.