Banks implement new CBN guidelines on debt recovery

Deposit Money Banks on August 1 commenced the implementation of the Central Bank of Nigeria’s Global Standing Instruction which allows them to recover outstanding debts of debtors from other banks.

Experts who spoke to our correspondent said the implementation would help to differentiate real wealthy businessmen from debtor businessmen.

A former President, Trade Union Congress, Peter Esele, said the guideline was long overdue but added that it was better late than never.

He said, “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.

“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.

“Some men are wealthy from running banks down because a lot of the big men are running banks down.”

He said the CBN and the banks should start giving credit score.

The President, United Labour Congress, Joseph Ajaero, said, “Banks that are lending money to people should make sure that they have adequate collateral.

“Ordinarily, banks cannot on their own go to another bank and take the money that was kept in another bank; they are independent and should operate independently.”

He said it was because the banks were lending without collateral that they were running into problem.