The Central Bank of Nigeria is set to redesign the Credit Risk Management System in the banking sub-sector. A circular issued by the central bank said that the apex bank is in the process of redesigning the Credit Rick Management System to enhance data integrity and promote the efficiency of the regulatory submission process. “The objective is to have the CRMS support the credit administration process in the financial services industry as well as promote the safety and soundness of the financial system in Nigeria.”
The circular also required commercial banks in the country to support the project in the following areas. They are the nomination of five staff per bank that have “direct oversight of credit administration, regulatory submissions, financial control and IT infrastructure in the respective institutions.” These nominees would serve each organisation’s contact persons and representatives during the engagement sessions with the CBN on the project.
In addition, banks are expected to articulate, document and submit comments on observed challenges with the current CRMS and areas of desirable improvements. Banks were further required to “provide a schedule of borrowers’ categorisation and types of loans and advances as well as a list of major collateral types used to secure loans and advances.”
The above information should be submitted to the director, Financial Policy and Regulation Department, within two weeks of the date of this circular.
By Dike Onwuamaeze