BOFI Act 2020: CBN to engage stakeholders soon as Buhari gives assent

0
27

 

President Muhammadu Buhari on Thursday, November 12, 2020 assented to the Banks and Other Financial Institutions Act 2020.

According to a statement signed by Garba Shehu, Senior Special Assistant to the President (Media & Publicity) this new law repeals the extant Banks and Other Financial Institutions Act 1991 as amended.

 

According to Shehu, “This monumental piece of legislation is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy.

 

 

 

“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.

 

National growth LS

 

 

“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.

Furthermore, the presidential spokesman said,  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,”Shehu revealed.

“This enactment of the BOFI Act 2020 is a historic and significant achievement, which is indicative of effective and productive collaboration between the Executive and Legislature arms of Government,” the statement said.

Follow Us On WhatsApp