Categories: Economy And Business Headline

CBN Suspends New Loan Applications, Gives Fresh Order To All Banks

Advertisement
Advertisement

CBN has suspended new loan applications and mandated banks to recover existing loans.

 

NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has announced a suspension of new loan applications under its Intervention Program.

 

This Nigeria news platform understands that in a circular entitled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,” addressed to the Chief Executives of banks, the CBN outlined this new directive.

 

The circular, signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, marks a strategic pivot in the bank’s operational focus.

 

SEE ALSO: Asari Dokubo Reacts 27 Lawmakers Loyal To Wike Dumping PDP In Rivers State

 

The suspension represents a significant shift in its approach to development finance intervention funds, which was the cornerstone of the previous central bank.

 

Concurrently, the CBN has tasked commercial banks, which previously facilitated the distribution of these intervention loans, with the responsibility of recovering outstanding loans issued under these programs.

 

This move signals an intensified effort by the CBN to streamline its financial commitments and refocus on more traditional central banking roles.

 

In a further elaboration of its evolving strategy, the CBN emphasized its intention to step back from direct involvement in development finance interventions. Instead, the apex bank plans to concentrate on its primary responsibilities surrounding monetary policy.

 

This realignment towards its core mandate will involve transitioning into a more advisory capacity, where it can provide policy guidance that supports broader economic growth objectives.

 

What CBN Said;

 “Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.

“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loans applications for processing under any of its existing intervention programmes and schemes.

“It is important that you communicate this to your customers. And kindly note that the interest rates, as well as other terms and conditions on all existing facilities, remain as contained therein in their respective approval letters.

“You may also wish to note that your bank shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through your bank.”

Advertisement
NewsOnline Nigeria

Recent Posts

  • Crime Watch

BREAKING: Popular Catholic Priest Kidnapped In South East (PHOTOS)

A popular Catholic Priest has been kidnapped in the South East.   NewsOnline Nigeria reports…

20 hours ago
  • Top Stories

UK Conservative Party Leader Kemi Badenoch Snubs Tinubu Government

UK Conservative Party Leader Kemi Badenoch has reportedly snubbed the Tinubu Government.   NewsOnline Nigeria…

20 hours ago
  • Economy And Business
  • Headline

BREAKING: Dangote, Marketers Fight Dirty Over Plots To Monopolize Oil Sector

Dangote and marketers fight dirty over alleged plots to monopolize the oil sector.   NewsOnline…

20 hours ago
  • Exchange Rates

Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 7th November 2024

The black market dollar to Naira exchange rate on Thursday 7th November 2024 can be…

20 hours ago
  • Economy And Business
  • Headline

BREAKING: Father Mbaka Breaks Silence Over Famine, High Cost Of Living

Father Mbaka has reacted to the famine and high living costs in Nigeria.   NewsOnline…

20 hours ago
  • Headline
  • World

BREAKING: President Trump Vows To Carry Out Largest Deportation In History

President Trump has vowed to carry out the largest deportation in history from his first…

20 hours ago