Loan defaulters to lose deposits in other banks – CBN

The Central Bank of Nigeria and other lending institutions have agreed to seize the bank savings of customers that borrow money and refuse to pay back .

They agreed that the deposits in the customers ’ other banks ’ accounts should be used to service the unpaid loans .

This was part of the resolution at the 345th Bankers Committee meeting which took place in Lagos on Monday .

At the meeting , the bankers decided that bank borrowers would be made to sign an agreement that if there was a default , the bank would have a right to access the borrowers other accounts .

The bankers also decided that vital information should be demanded from bank borrowers such as Bank Verification Number , Tax Identification Number among other documents .

During a press briefing after the meeting , some of the bankers who spoke said that this was necessary to boost lending in the small and medium enterprises ’ sector .

They also said it was necessary to assist the Deposit Money Banks to maintain a minimum Lending and Deposit Ratio of 60 per cent by September 30 , 2019.

If you don ’ t pay the loans you collected from a bank , we will use your deposits in other banks to service your loans .

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