Monday, May 17African Business News
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Tag: GSI

CBN may have to do more about NPLs as consumer loans account for a mere 10% of total credit

CBN may have to do more about NPLs as consumer loans account for a mere 10% of total credit

Finance
Individual and consumer borrowing from Nigerian banks account for a meagre twelve per cent of the total loan basket of banks and the central bank may need to do more to cut the sector’s level of non-performing loans. The size is even smaller at around five per cent of total loans for large banks according to analysts at FBNQuest Capital. Early this week, the CBN rolled out global standing instruction (GSI) guidelines for various classes of individual accounts including savings, current, domiciliary, electronic wallets and Investment accounts in a last resort to facilitate the recovery of past due obligations by creditor banks without recourse to the borrower. Once this platform comes online on August 1, 2020, creditor banks will be enabled to make direct debits from other deposit/invest...