14

Sep

CBN, DBN urge MfBs to improve sustainable banking

The Development Bank of Nigeria and the Central Bank of Nigeria have urged microfinance banks and other participating financial institutions to improve their sustainability efforts and become more responsive to their social and ecological environment. The banks said this was important as Nigeria and the global communities continued to grapple with the effects of climate depletion and economic uncertainties caused by the COVID-19 pandemic According to a statement on Friday entitled ‘DBN advocates sustainability banking for MFBs,’ the banks said this during a webinar organised by DBN for MfBs and PFIs. The initiative was focused on deepening DBN’s efforts to […]

14

Sep

CBN waives guarantor requirement for N50 billion COVID-19 loan applications

The Central Bank of Nigeria (CBN) announced this evening that households and SMEs applying for the N50 billion COVID-19 Targeted Credit Facility would not be required to provide guarantors before the can access they can access the credit facility. This is according to a very brief press statement that was posted on Twitter. The statement did not give any reason for the waiver. Recall that the CBN N50 COVID-19 billion Targeted Credit Facility was unveiled by the apex bank in response to the Coronavirus pandemic. The credit facility is aimed at providing financial relief to households and small businesses as[…]

20

May

Credit Bureaus and Credit Scores

A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on the individuals credit history. Credit scores steams from a key need – The need to ascertain the associated default risk of the borrowing party using historical credit reference and predict the probability that the borrower will default/perform on a new loan obligation. By some credit score user’s standard however, the current credit score model may be limited in a number of ways – (1) It leverages on credit parameters and ignore individuals without credit, even though such person may be liquid. (2) It declares[…]