In a bid to reduce and recover loans from debtors, the CBN has directed that banks should seize the deposits of debtors’ for loan repayment, VANGUARD reports.
The Central Bank of Nigeria (CBN) came to this agreement with commercial banks in the country over loans.
The agreement entails that loan defaults can now be settled with deposits made in other banks.
Aishah Ahmad, the Deputy Governor of the CBN, financial services system, while addressing journalists after the bankers’ Committee meeting on Monday, said that the new directive is to encourage banks to increase lending.
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