EMEKA OKOROANYANWU
Central Bank of Nigeria (CBN) has issued the revised Guidelines for Primary Mortgage Banks in Nigeria, to re-position the mortgage sub-sector with a view to harnessing its potentials for sustained economic growth.
The guidelines introduced enhanced requirements for capital, risk management, internal control and corporate governance.
Even with previous measures put in place, the mortgage sub-sector continued to struggle against headwinds occasioned by unfavourable macroeconomic and other developments.
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The guidelines have been reviewed to strengthen primary mortgage banks as well as complement other on-going reforms in the mortgage sub-sector
Meantime, the apex bank has also released the final guidelines for the Management of Credit Concentration Risk; Management of Reputational Risk; Management of Interest Rate Risk in the Banking Book (IRRBB) and Guidelines on Stress Testing for the Nigerian Banks.
The essence of the Guidelines, the bank said is to set out the minimum expectations with respect to the procedures for the identification, measurement, monitoring, reporting, management and assessment of those risks and stress testing by banks in line with the requirements of the Supervisory Review Process.
All banks are required to adopt the Final Guidelines with immediate effect.
