The Nigerian Deposit coverage enterprise has disclosed that from its examinations, lots of the non-performing loans by the deposit money banks are insiders loan availed directors of the institutions.
This was once disclosed by using Mr. A.A Adeleke, Director, bank Examination department of the NDIC, at the same time speak me on the topic, curtailing the progress of Non-performing Loans in Banks, at the just concluded workshop for industry editors and finance correspondents in Kano.
Adeleke said: unfortunately, between 1994 and 2011, we closed down over 50 banks, and what we discovered over time is that lots of the loans that dragged these banks down the place insider loans given to their administrators.
It might be recalled that the Managing Director of NDIC, Umar Ibrahim, had mentioned that bank directors were in charge for 40 percent of the N1.85 trillion non-performing loans or dangerous loans in banks.
He also published that directors have been responsible for roughly forty percent of N139.Forty-five billion unhealthy loans in microfinance banks and personal loan banks.