The Central Bank of Nigeria (CBN) has ordered banks to publish the names of individuals and companies with non-performing loans.
CBN said this is to curb a rise in bad debt portfolio of banks. The order is causing palpable tension in the banking industry as many customers are pleading with banks to cover their shame.
Many banks it is believed will publish the names of chronic debtors.
CBN through its Director of Banking Supervision, Tokunbo Martins, released a circular posted on its website.
The statement said the new rule is effective May 1 and is to "ensure that the industry NPL(Non Performing Loan) ratio does not exceed the prudential limit of 5 percent, and to improve the credit culture in the banking industry"
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