Findings have revealed that the Deposit Money Banks are recovering debts been owed by chronic debtors through their accounts in other banks to cub the further increase of non-performing loans in the industry,
According to report, the figures obtained from the Central Bank of Nigeria and the National Bureau of Statistics showed that there is a slight decline from N1.2tn at the end of the second quarter of 2020 to N1.1tn at the end of July 2021 as recorded by the NPLs in the banks despite the increase in the gross loans in the industry within this period of time.
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The CBN said the measures it introduced such as the Global Standing Instruction to reduce banking sector risks was helping to reduce the Nonperforming loans in the sector.
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The GSI, which started on August 1, 2020, allows banks to recover the outstanding principal and interest upon default from any account maintained by the debtor across all financial institutions in Nigeria.
Also the CBN has stated in the latest Monetary Policy Committee report that there will be no increase in lending rates in the sector.
“On loosening, the committee felt that this would lower retail interest rates and improve the ability of obligors to repay their obligations, with a complementary reduction in NPLs,” it said.
