The Central Bank of Nigeria (CBN) said it will commence monthly compliance status checks of each deposit money bank’s Credit Risk Management System (CRMS) returns to verify compliance with the requirements.
The CBN said this on Thursday in a circular to all banks signed by Tukur I.S, director, financial policy and regulation department, on “The Redesigned CRMS: Notice of Commencement of CMRS Compliance Status Checks”.
The regulator advised all banks to ensure that not later than 8th day after each month end live CRMS record are updated to ensure their totals match the FiNA month end returns.
Section 6.2 of the CBN circular dated February 17, 2017 requires the chief financial officer to ensure that total loans/advances/credits reported on FiNA or any regulatory platform for such submissions of returns must match total value of credit/exposures reported in the CRMS (including the distribution of exposures by ‘business lines’).
“Given that banks must complete their routine end-of-month processes required in order to generate balances required to correctly update the balance of each live CRMS record, there is need to align this compliance status check with the extant circular ref: BSD/DIR/GEN/ LAB/07/011 (dated April 10, 2014) on the timelines for rendition of statutory returns through the FiNA application to the CBN and the NDIC. This circular specifically provides a 5-day grace period after month end for banks to submit their end-of-month returns”, the circular reads.
HOPE MOSES-ASHIKE
