Banks have commenced the implementation of the new Central Bank Nigeria’s Global Standing Instruction which allows them to recover outstanding debts of debtors from other banks.
Speaking on the development, a former President, Trade Union Congress, Peter Esele, said the guideline was long overdue but noted that it was better late than never.
Esele said “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.
“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.
“Some men are wealthy from running banks down because a lot of the big men are running banks down.”
The former TUC boss recommended that the CBN and the banks should start giving credit score.
On his part, United Labour Congress’ President, Joseph Ajaero, said, “Banks that are lending money to people should make sure that they have adequate collateral.
“Ordinarily, banks cannot on their own go to another bank and take the money that was kept in another bank; they are independent and should operate independently.”
Ajaero averred that it was because the banks were lending without collateral that they were running into problem.
