The Central Bank of Nigeria (CBN) has said that through its policy initiatives and strategies, there is no more hiding place for bank debtors.

The CBN Director, Banking Supervision Department, Hassan Bello, declared this while delivering a paper on “State of the Nigerian economy and implications for the stability of the banking system” at a workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN).

The workshop taking place in Yola, Adamawa state with the theme: “Nigerian banking system stability: Tackling emerging issues” is organised by the Nigeria Deposit Insurance Corporation (NDIC).

He explained that the strategies were meant to encourage lending and safeguard the loans given out to borrowers to the extent that no borrower from one bank will abscond to another bank to borrow without first of all paying back the initial loan.

According to him, “We also did what we call Global Standing Instruction (GSI) such that addresses this issue of non-performing loans, delinquent or perennial debtors.

“Now, what we did in the system which is going to work towards the stability of the financial and banking system is that so long as you have a deposit in a particular bank; and for instance you have N1 million deposit in Zenith Bank, and you went and borrowed N1.5 million in Union Bank; and then you leave that one and go to Standard Chartered bank for another N1 million; yes it is the same BVN being used.

“The new GSI is that so long as you have money in any bank, the Bank you’re owing can take it straight because by the time you’re signing that for that loan, you’re signing the GSI form. They will not even consult you. You just see debt alert from Zenith Bank.”

The Director, Bank Examination Department, NDIC, Mr Tayo Babatolu while delivering a paper on “Emerging Issues in the regulation and supervision of banks in Nigeria”, enumerated some policy measures taken to stimulate economic growth programmes.

These include the introduction of sustainable banking principles, code of corporate governance, implementation of a common financial year-end for banks, and increase in the deposit insurance cover for bank depositors for N500,000.