CBN Sacked Bank Directors Over Non-performing Loans – NDIC

CBN Sacked Bank Directors Over Non-performing Loans – NDIC

Like This Video 0 2750 Segun Vincent
Added by November 30, 2017

The Nigerian Deposit Insurance Corporation (NDIC) has disclosed that most of the non-performing loans by the deposit money banks are insiders loan availed directors of the institutions.

This was disclosed by the Director, Bank Examination Department of the NDIC, Adedapo Adeleke, at the just-concluded workshop for business editors and finance correspondents in Kano.

Adeleke said: “Regrettably, between 1994 and 2011, we closed down over 50 banks, and what we discovered over time is that most of the loans that dragged these banks down were insider loans given to their directors.”

It could be recalled that the Managing Director of NDIC, Umar Ibrahim, had said that bank directors are responsible for 40 percent of the N1.85 trillion non-performing loans or bad loans in banks.

He also revealed that directors were responsible for about 40 percent of N139.45 billion bad loans in microfinance banks and mortgage banks.

Ibrahim stressed that while the banking industry has strong fundamentals in regulatory assessment and rating, regulators are concerned about the rising tide of Non-Performance Loans (NPLs) in the banking system.

As at December 2016, the 25 Deposit Money Banks (DMBs) had a total loans portfolio of N18.53 trillion out of which N1.85 trillion or 10 percent were NPLs where N740 billion or 40 percent constituted insider/directors related loans. That was far above the regulatory threshold of 5 percent for the DMBs.

Adeleke disclosed that while the current economic growth is expected to ease the impairment on the banks, the NDIC will tighten its nose around supervision with the introduction of the “expected loss rules” which will compel the banks to make provision for performing loans that are expected to go bad as a result of a prevailing situation.”

Similar Videos

President Buhari Mourn Late Song Writer, Sound Sultan

1726 0

The singer had on Sunday died after a hard-fought battle with Angioimmunoblastic T-Cell Lymphoma. He was 44-year-old. President Muhammadu Buhari has mourned singer, Olanrewaju Fasasi, popularly known as Sound Sultan. The singer had on Sunday died after a hard-fought battle

Teenagers Arrested During EndSARS Protest Relinguish In Ondo Prison

1578 0

Two boys who were arrested for EndSARS abandoned in Ondo Prison,” a source, who does not want to reveal their names yet, told SaharaReporters. Two teenagers arrested for allegedly participating in the October and November EndSARS nationwide protests in Ondo

ANC Holds ‘Constructive’ Talk With President Zuma

0 2073 0

South Africa’s ruling party, the ANC, has postponed the proposed meeting of the party’s national executive committee. The meeting was expected to have as its main agenda a discussion of the removal of South African President Jacob Zuma. This meeting

No Comments

No Comments Yet!

No Comments Yet!

But You can be first one to write one

Write a Comment

Your data will be safe!

Your e-mail address will not be published. Also other data will not be shared with third person.
Required fields are marked*