The Central Bank of Nigeria CBN in collaboration with Bankers Committee has come up with new measures to support banks lending to creative industry.
Deputy Governor Financial Systems Stability, Aishah Ahmad who disclosed this in Lagos at press briefing after 345 bankers committee meeting said the CBN and bankers committee had earlier agreed that should extend credit to SMEs and creative industry in order to revertilised the nation’s economy but there were some challenges that affected the initiative.
She said that the apex bank and bankers committee have come up with a clause that would be added by banks while issuing a letter to individual or group that would apply for loan under Creative Industry Financing Initiative (CIFI).
She, however , said that with the new measure the issue of collateral will be a thing of the past.
She stated that the bankers committee at the meeting come up with an idea to established Mortgage guarantee company. The mortgage guarantee company according her would help Mortgage banks in recovery of loans in case of the borrower defaults.
All these measures according to her was set to assure banks that they would recover their money even if the borrower defaults.
Group Managing Director Access Bank Plc, Mr Hebert Wigwe expressed the need for individual banks to extend credit facilities to creative industry such as fashion , Information Technology, movie production, movie distribution, music and Software Engineering Student Loan to increase the industry’s impact in the growth of the economy. He said there is a pilot scheme going on in that regard and preliminary work has started.