Sanusi Lamido Sanusi, the governor, Central Bank of Nigeria (CBN), on Thursday said that effective Credit Reporting Standard (CRS) would solve the problem of bad loans in the financial sector.
He said this in a message to a conference organised by the CBN and Business Development and Investment Ltd in Lagos.
Sanusi, who was represented by Folakemi Fatogbe, the special adviser to the governor and director in the Department of Risk Management, recalled that CRS was introduced by the apex bank in 1998.
The CBN governor explained that the introduction of CRS was due to the crisis in the financial sector.
He said that investigation carried out by the CBN revealed that a lot of customers obtained loans from banks and refused to pay back.
“The same set of customers will cross to other banks to access loans and this led to the collapse of the financial sector”, he said.
Sanusi expressed concern that most banks lacked the Single Customer’s Identifier that would be able to capture debtors in the financial system.