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The Central Bank of Nigeria (CBN) is extending its Credit Risk Management System (CRMS) to Primary Mortgage Banks, Microfinance Banks and Development Financial Institutions saying that enrollment is to begin.
The CRMS is a database that holds credit information on borrowers and debtors. It is a central system that is accessible to all banks in Nigeria for obtaining information on borrowers to avoid facilitating debtors who are unable to repay.
The CBN rule on CRMS mandates all financial institutions to provide returns in respect of all their customers with an aggregate outstanding debit balance of N1mn and above.
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What is the CBN CRMS
Also called the Credit Bureau, the CRMS requires banks to update these credits on a monthly basis. More so, it expects banks to make a status enquiry on any intending borrower to determine their eligibility or otherwise.
The CRMS database allows banks and other stakeholders to dial directly into a database of borrowers and debtors to render the statutory returns or conducting a status enquiry.
The CBN is now including other financial institutions (OFIS) in the CRMS and requires them to render returns.
According to a circular by the CBN, “DFIs, PMBs, MFBs and FCs are required to report all credit facilities (principal and interest) to the CRMS and to update same on a monthly basis.”
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Furthermore, the CBN stated that Bank Verification Number, (BVN) and Tax Identification Number (TIN) are the basis for regulatory rendition.
OFIs are to conclude tagging of all live credit files for all individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021.
It will sanction OFIs who fails to comply with the order to enroll on the CRMS before the above date.
