Loans ‘desta­bil­is­ing’ Nige­ria banks

Weekend Argus (Saturday Edition) - - LIFE -

ABUJA: The Nige­ria De­posit In­sur­ance Cor­po­ra­tion (NDIC), an in­de­pen­dent gov­ern­ment agency, is con­cerned about an “in­creas­ing wave” of non-per­form­ing in­sider loans on the coun­try’s banks.

Man­ag­ing direc­tor Al­haji Ibrahim was con­cerned about the con­se­quences of the loans on the sta­bil­ity of the na­tion’s bank­ing sys­tem. The loans are paid by banks to their direc­tors and share­hold­ers.

“He called for strict com­pli­ance with the ex­ist­ing code of con­duct and a re­view of the ex­ist­ing laws and reg­u­la­tions to pro­vide stiffer penal­ties for direc­tors who take ad­van­tage of their po­si­tions and failed to pay back their loans”, the NDIC said.

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