Home / ECONOMY / Loan defaulters to lose deposits in other banks
Emefiele being sworn in for the second time as CBN Governor on Monday, June 3, 2019

Loan defaulters to lose deposits in other banks

The Central Bank of Nigeria and other lending institutions on Monday agreed to seize the bank savings of customers that borrow money and refuse to pay back.

This was part of the resolution at the 345th Bankers Committee meeting which took place in Lagos.

The Deputy Governor, CBN, Aishah Ahmad, who addressed a press conference said the banks’ appetite to lend had been curtailed by some customers’ willfully refusing to pay their loans.

She noted that, this should not hinder honest borrowers from having access to loans.

Asides from using collateral, she said the banks were exploring other means such as using credit scores of the bank customers.

While speaking of efforts to ensure the 60 per cent Loan to Deposit Ratio target was achieved by September 30, she said it was also ensuring that the non -performing loans did not rise in the banking sector.

The Managing Director, Guaranty Trust Bank, Segun Agbaje, said, banks would soon start giving out more loans to the retail sector because they were important to grow the economy.

“If you don’t pay the loans you collected from a bank, we will use your deposits in other banks to service your loans,” he said,

The Managing Director, Access Bank, Herbert Wigwe, said the Bankers Committee was increasing its lending to the creative sector.

He said the banks were partnering with Lagos State Government and working out a structure to increase its lending to the entertainment sector among others.

At the meeting, the bankers decided that bank borrowers would be made to sign an agreement that if there was a default, the bank would have a right to access the borrowers other accounts.

The bankers also decided that vital information should be demanded from bank borrowers such as Bank Verification Number, Tax Identification Number among other documents

About Frontview Tom

Leave a Reply


Check Also

ECOWAS condemns continued closure of Nigeria’s land border

The Speaker of the ECOWAS Parliament, Moustapha Cisse Lo, on Wednesday condemned the closure of the land ...

%d bloggers like this: