President Buhari assents to Banks and Financial Institutions Act BOFIA 2020

President Buhari has assented to the Banks and Other Financial Institutions Act (BOFIA) 2020.

The Act repeals the extant Banks and Other Financial Institutions Act 1991 as amended. The legislation is expected to enhance the resilience of the financial system for the growth of the Nigerian economy. It updates the enabling law in response to developments and significant evolution in the financial sector.

The BOFIA 2020 indicates an intention of effective and productive collaboration between the executive and legislature arms of government to enhance the effectiveness of financial system.

Especially in response to developments and significant evolution in the financial sector over the last two decades. It will increasingly encourage banks and other financial institutions to channel the much-needed credit to the real sector to support economic recovery and promote sustainable growth.

The Senior Special Assistant to President Buhari on Media and Publicity, Garba Shehu said, the Act will increase the appetite of banks and other financial institutions to channel credit to the real sector. It also introduces a credit tribunal to improve loan recovery. Furthermore, the legislation addresses the incidence of high non-performing loans within the financial system.

Why BOFIA 2020 Act?

Advertisements

1.The new BOFIA 2020 introduces a credit tribunal to improve loan recovery and address the incidence of high non-performing loans within the financial system, which has been a key deterrent to lending by financial institutions.

2. It strengthens the regulatory and supervisory framework for the financial industry and provides additional tools for managing failing institutions and systemic distress to preserve financial stability amongst others.

3. The Central Bank of Nigeria will hold structured engagements with stakeholders across various sectors of the economy on critical aspects of the Act in the coming months.

4. The historic Act is expected to enhance the soundness and resilience of the financial system for sustainable growth and development of the Nigerian economy.

,

About Admin

Advertisement, Content marketing and  sponsored post: contact : Kokobest04@gmail.com
View all posts by Admin →