• News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
MSME Africa
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
MSME Africa
No Result
View All Result

CBN to Integrate Mortgage Banks and Microfinance Banks into GSI Platform For Loan Recovery Efficiency

Blessing Joseph by Blessing Joseph
December 11, 2024
in Financial Services, News
0
CBN to Integrate Mortgage Banks and Microfinance Banks into GSI Platform For Loan Recovery Efficiency
Share

The Central Bank of Nigeria (CBN) has unveiled plans to incorporate Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs) into the Global Standing Instruction (GSI) platform, a move aimed at addressing the rising challenge of non-performing loans in Nigeria’s financial sector.

  1. Loan Recovery Mechanism
    The GSI platform, launched in August 2020, allows creditor banks to recover overdue debts directly from funds held in a borrower’s qualifying accounts across participating financial institutions, bypassing the borrower’s consent.
  2. Enhanced Financial Stability
    • Integration of PMBs and MFBs into the GSI system will enhance loan recovery processes and reduce the prevalence of non-performing loans.
    • This initiative is part of broader reforms to strengthen Other Financial Institutions (OFIs), which play a critical role in boosting financial inclusion and supporting underserved segments.
  3. Support for MSMEs and Underserved Populations
    The inclusion of OFIs such as PMBs and MFBs is expected to expand access to credit for micro, small, and medium enterprises (MSMEs), aiding economic recovery and growth.

Governor Olayemi Cardoso, speaking at the 2024 Bankers’ Night in Lagos, outlined the CBN’s strategic goals:

  • Implementing mortgage foreclosure laws to encourage lending and reduce defaults.
  • Leveraging Development Finance Institutions (DFIs) to provide increased on-lending facilities.
  • Strengthening the operational efficiency and impact of OFIs.

Cardoso commended the resilience of Nigeria’s banking sector, highlighting:

  • Non-performing loan ratio within the prudential benchmark of 5%.
  • Liquidity ratio exceeding the regulatory floor of 30%.

These metrics underscore strong credit risk management and the sector’s ability to support economic recovery.

Nigeria’s fintech ecosystem continues to lead Africa in financial inclusion and innovation:

  • Several Nigerian fintech firms achieved unicorn status in 2024, driving growth in digital transactions.
  • Cardoso emphasized the need for robust Know-Your-Customer (KYC) protocols and consumer protection to build trust and address delays in payment systems.

Future Outlook

The integration of PMBs and MFBs into the GSI platform reflects the CBN’s commitment to:

  • Strengthening Nigeria’s financial system.
  • Expanding access to credit.
  • Driving economic recovery and sustainable growth through technology and innovation.

As Governor Cardoso affirmed, “Through strengthened institutions and innovative platforms, we can create a robust financial system that works for all Nigerians.”

 

 

Post Views: 120
Share

Related Posts:

  • Top 15 Social Media Marketing Tools for Nigerian Entrepreneurs
    15 Social Media Management Tools That Will Make Life…
  • MSME Africa Unveils Top 50 Remarkable MSME Founders 2023, Awards them $25,000 in Media Credits
    MSME Africa Unveils Top 50 Remarkable MSME Founders…
  • Best Cities to live as an Entrepreneur in Nigeria
    Ultimate 2024 Guide to the Top Business Enabling…
  • Africa must prepare for the inevitability of a global food crisis - Akinwumi Adesina
    Overcoming Binding Constraints to Competitive…
  • Collaborations and Partnerships are Key for MSME Business Success
    How Technology Will Retool the Nigeria Business…
  • Ronke Sokefun NDIC Chairman
    NDIC to Revoke Licenses of 37 Microfinance Banks
Tags: CBNCentral Bank of NigeriaEntrepreneursGSI PlatformLoan Recovery Efficiency In NigeriaMicrofinance Banksmortgage banksMSME AfricaMSME News in Nigeria today
Previous Post

Option Financial Servives Launches up to N500,000 Daily Loan Solution for MSMEs

Next Post

Naira Falls Again; Slides to N1745/$ at the Parallel Market, Widening Disparity with Official Rate

Next Post
Naira Falls to N1,745/$1 on Parallel Market, Widening Disparity with Official Rate

Naira Falls Again; Slides to N1745/$ at the Parallel Market, Widening Disparity with Official Rate

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result
Join MSME on Whatsapp
Subscribe To Our Newsletter
Enter your email to receive a weekly round-up of our best posts. Learn more!
icon
By subscribing, you agree with our privacy policy and our terms of service.

Recent Posts

  • NADF, GIZ Push for Gender-Inclusive, Climate-Smart Financing to Boost Nigerian Agriculture
  • Nigeria Recommits to Africa’s Development with Fresh $500 million Trust Fund Boost – Edun
  • Manufacturers Seek Legal Measures for Violators of ‘Nigeria First Policy
  • LCCI Insists FG’s Policies Compounding Economic Hardship
  • Fincra Secures South African Payments Licence, Boosting Cross-Border Expansion Across Africa

Recent Comments

  • 10 Reasons Why SMEs Should Invest in Video Marketing - MSME Africa on How to Create Viral Videos for Social Media in 2024
  • link alay4d on 5 Nigerian-based Companies Providing Accelerator Programs for Startups in 2024
  • Damilare Oladeji on Nigerian Government Agencies that Support Entrepreneurship in 2024
  • situs alay4d on 50 Best Tools to Boost Your Productivity as an Entrepreneur in 2025
  • Otabor Osayomore Blessing on Ultimate 2025 Guide to the Top Business Enabling Cities for Startup Founders and Entrepreneurs in Nigeria
  • About us
  • Advertise with Us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.

No Result
View All Result
  • About us
  • Advertise with Us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.