BANKING: SENATE MOVES TO CHECK LOAN DEFAULTERS
The Nigerian Senate is nearing passage of a law that will empower creditor banks to track the accounts of loan defaulters by means of the Bank Verification Number [BVN] to recover past and due obligations.
Galaxy’s Godfrey Eshiemoghie reports that the law will also prescribe penalties for breaches and violations of obligations to enhance loan recovery in Nigeria’s banking sector.
The Bill sponsored by Niger East Senator, Sani Musa, seeks to among other things put effective measures in place to prevent collapse of banks.
In their submission, a cross-section of the senators welcomed the Bill as it further underscores the need for safety measures in Nigeria’s banking sector.
Meanwhile, the Bill has been referred to the Senate Committee on Banking, Insurance and Other Financial Institutions with the mandate to report back in four weeks.
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