The Central Bank of Nigeria (the “CBN”) on 10 September 2018 released the “Additional Regulatory Guidelines for the Operation of the Redesigned Credit Risk Management System (CRMS) for Commercial, Merchant and Non-Interest Banks” (the “Guidelines”). These guidelines are pursuant to the Regulatory Guidelines for the Operation of the Redesigned Credit Risk Management System (CRMS) for Commercial, Merchant and Non-Interest Banks released on 27 February 2017 (the “Initial Guidelines”).

The Credit Risk Management System (the “CRMS”) was established to minimize loan defaults by ensuring that the beneficiaries of loans or credit are uniquely identified on the CRMS database. The Guidelines therefore, clarify the compliance requirements under the Initial Guidelines as it relates to:

  • Corporate borrowers with foreign Non-Resident Directors on its board;
  • Federal, state or local government guarantee of loans or credit to companies in Nigeria;
  • Loans to employees of commercial, merchant and non-interest banks; and
  • Retention period for closed records on the CRMS.

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