Banks Recovering Debts From Other Lenders, Emefiele Says

Credit conditions in the banks have improved and banks are now able to recover customers’ debts from other lenders.

The Governor, Central Bank of Nigeria, Godwin Emefiele said this while giving some of the measures introduced in the financial sector during the 2019 Bankers Committee retreat in Ogere, Ogun State, on Friday.

He said, “Credit conditions in the banking system have improved supported by our new policy measures announced in June 2019, which require banks to maintain a minimum 65 per cent loan to deposit ration.

“In addition, banks are now able to recover delinquent loans from customers’ accounts in other banks.”

As a result, he said, the gross credit increased by N1.16tn between May and October 2019, which had helped to place the banks in a better position to support a stronger economic recovery.

He said the country’s financial system was in a much stronger position, following the crisis as capital buffers and liquidity in the banking system had continued to improve.

According to him, industry-wide Capital Adequacy Ratio has increased from 10.2 per cent in December 2017 to 15.5 per cent in September 2019.

The CBN governor said the percentage of non-performing loans in the banking sector had declined from its high of 14.7 per cent in January 2017 to under seven per cent as of October 2019.