Banks implement new CBN guidelines on debt recovery

Banks have commenced the implementation of the new Central Bank Nigeria (CBN) guidelines on debt recovery of debtors from other banks.

Mr. Peter Esele, a former president of Trade Union Congress said the guideline was long overdue.

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.

Mr. Joseph Ajaero, the president of United Labour Congress 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.