More Power For Banks As Buhari Signs New BOFIA

By Emmanuel Aziken

President Muhammadu Buhari on Thursday, November 12, 2020 assented to the Banks and Other Financial Institutions Act 2020, spokesman, Garba Shehu said on Friday.

The new act repeals the extant Banks and Other Financial Institutions Act 1991 as amended.

The new act is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy notably in the area of risk management.

HOW THE NEW ACT AFFECTS THE BANKS AND YOU

The BOFI Act 2020 updates the enabling law in response to developments and significant evolution in the financial sector over the last two decades.

It will increase the appetite of banks and other financial institutions to channel much needed credit to the real sector to support economic recovery and promote sustainable growth.

Credit Risk

In this respect, it introduces a credit tribunal to improve loan recovery and address the incidence of high non-performing loans within the financial system, which has been a key deterrent to lending by financial institutions.

More Powers For CBN

Furthermore, it strengthens the regulatory and supervisory framework for the financial industry and provides additional tools for managing failing institutions and systemic distress to preserve financial stability amongst others.

The Central Bank of Nigeria will hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.

President Buhari’s action follows the similar assent to the Companies and Allied Matters Act, CAMA which had not been touched for more than 20 years until this year.

Send Us A Press Statement Advertise With Us Contact Us

 And For More Nigerian News Visit GWG.NG