CBN Orders Banks To Register All Collateral With The Nigeria Collateral Registry

Share to your friends!

CBN Orders Banks To Register All Collateral With The Nigeria Collateral Registry

CBN Orders Banks To Register All Collateral With The Nigeria Collateral Registry - NEWS

he Central Bank of Nigeria (CBN) with effect from yesterday, mandated all banks and other financial institutions in the country to register all collateral used in obtaining loans with the Nigeria Collateral Registry (NCR).The NCR is  a platform where all collateral, moveable and immovable collateral  can be registered, thereby removing the risks of some bank customers using the same collateral to access facilities in more than one bank.

The directive was issued to banks and other financial institutions in a circular by the CBN and signed by its Director, Financial Policy and Regulations Department, Kevin Amugo. The apex bank while informing that the notice-base on-line NCR is now operational and can be accessed at the registry’s website, stated that “all banks and other financial institutions are hereby required to register the security interests in moveable assets with the NCR with effect from Monday July 4, 2016.”

READ ALSO:  Nigerians react after CNN omitted 'Nigeria' In Mark Zuckerberg's visit report on Twitter

Asides registering all securities with the NCR, the CBN also directed that all financial institutions “conduct search on the NCR as part of the credit assessment and risk management process in order to ascertain the encumbrance status of moveable assets sought to be used as collateral for credit facilities.”

The CBN in furtherance of its statutory mandate of promoting a sound financial system in Nigeria had issued and gazetted in February 2015 the Registration of Security Interests in Moveable Property by Banks and Other Financial Institutions in Nigeria.

The regulation is targeted at providing a regulatory framework for accessing credit secured with moveable property creating and perfecting security interests and realizing security interests in moveables.

Share to your friends!
Related Stories

Leave a Reply

Your email address will not be published.

Close

Get daily NEWS updates every 9pm

Can't make it to our website everyday? Don't worry we can make it to your email everyday to keep you updated!

You have successfully subscribed! One more step: Kindly check your mail now to verify your subscription.