CBN Releases Criteria For Credit Risk Management System

In order to qualify for enrolment onto the Credit Risk Management System (CTMS), the Central Bank of Nigeria (CBN) has set criteria to be met by Other Financial Institutions (OFIs).

This was revealed by Chibuzo Efobi, Director, Financial Policy and Regulation Department, on the CBN website on Tuesday.

The circular has the caption: “Re: Enrolment of Other Financial Institutions (OFIs) on the Credit Risk Management System (CRMS).”

It explained that further to the various engagements with all OFls in respect of the above captioned, “our circular dated April 8, 2021 (Ref No. FPRD/DIR/PUB/CIR/01/002) and letter dated April 9, 2021 (Ref No. OFI/DOA/CON/LTT/002/193).

“All OFls are hereby informed that; the provisions of the Regulatory Guidelines for the Redesigned Credit Risk Management System for Commercial, Merchant, and Non-Interest Banks in Nigeria issued on February 27, 2017 (Ref No. FPR/DIR/GEN/CRM/06/012).

“And the Additional Regulatory Guidelines for the operation of the Redesigned CRMS issued on September 10, 2018 (Ref No. FPR/DIR/GEN/CIR/07/007) have become applicable to all OFls.

“Accordingly, and more specifically, enforcement of Section 3.1(a) of the extant guidelines on CRMS that captures the ‘submit before disbursement’ requirement shall commence on August 1, 2022,” It said.

It urged all OFIs to ensure that their customers’ accounts complied with the 10-digit Nigeria Uniform Bank Account Number (NUBAN) fomat, and to also  ensure that their customers’ accounts were tagged with Bank Verification Number (BVN) or Taxpayer ldentification Number (TIN) for individual and non-individual accounts respectively.

"The account holder must be profiled on NIBSS Industry Customer Accounts Database (1CAD) not later than June 20.

Finally, the CBN warned that failure to comply with the above timelines shall attract appropriate sanctions