Lagos – An economist, Mr Chris Nemedia, has called on the Central Bank of Nigeria (CBN) to apply its appropriate sanctions against bank directors who grant loans to customers without collaterals.
Nemedia, a former director in the Economic Research Dept, CBN, suggested this while responding to questions from the News Agency of Nigeria (NAN) in Lagos on Friday.
He said that such sanctions would reduce the rate of bad loans and debts being incurred by banks whose directors perpetrate such acts.
The economist said that one of the sanctions should include the removal of such a director from office to serve as a deterrent to others.
“The CBN needs to enforce its rules so as to lessen the incidence of bad loans being written-off by banks as it is not healthy for the nation and its banking sector.
“However, no bank can do without incurring bad loans but it should be within a manageable limit,” he said.
He noted that banks in the country should ensure that they improved on their risk mana..