Banks Begin Deduction Of Loans From Debtors’ Accounts

The Central Bank of Nigeria has given the Deposit Money Banks go-ahead-order to recover debt owed by debtors from other accounts rather then the account and bank used to collect loan

The numbers of Non-performing Loans (NPL) in Deposit Money Banks have reached its epitome, making some financial institutions in need of fund for survival

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Data released shows that, the Non-performing Loans (NPL)

“The Deposit Money Banks are recovering debts owed by chronic debtors from their accounts in other banks to curb the growth of non-performing loans in the industry, findings have revealed.

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“Figures obtained from the Central Bank of Nigeria and the National Bureau of Statistics showed that the NPLs in the banks recorded a slight decline from N1.2tn at the end of second quarter of 2020 to N1.1tn at the end of July 2021”

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 “On loosening, the committee felt that this would lower retail interest rates and improve the ability of obligors to repay their obligations, with a complementary reduction in NPLs,” it said.

“Recent data also show that stability has been maintained and a smooth functioning of financial intermediation ensured.

“CBN staff report indicates that the banking sector’s non-performing loan ratio has fallen from 6.3 per cent in February to 6.0 per cent in March and further to 5.9 per cent in April.”

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