By Sahabi Abdul
President Muhammadu Buhari signed the amended Banking and Other Financial Intitutions Law, which gives effect to the creation of credit tribunals for loan recovery.
The new law also seeks to strengthen the regulatory framework undergirding the financial system to improve supervision and equip regulators with the tools to manage systemic distress, according to a statement signed by presidential spokesman Garba Shehu.
“It introduces a credit tribunal to improve loan recovery and address the incidence of non-performing loans within the financial system,” Shehu said in the statement.
The government’s expectation is that with improved loan recovery, the hunger for lending to the real sectors of the economy will grow in banks and other financial institutions that had in the past been deterred by the high incidence of bad loans, the government said.