Insiders loan for directors should be banned – Chike-obi

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The Chairman of Fidelity Bank Nigeria and President of Bank Directors Association of Nigeria (BDAN), Mustafa Chike-Obi, has called for the complete ban of insider loans by the Central bank of Nigeria (CBN).

Chike-Obi made the call in an exclusive chat with Daily Trust in reaction to the CBN directive asking bank directors with non-performing loans to resign.

He said: “Fidelity Bank’s credit policy, since I became chairman, is a credit policy that would not allow any insider loans. Not even the CBN limit of 5%.

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“We don’t allow any. My theory is that if you have a good business requiring a loan, you can go get the loan from some other bank. So we don’t allow it.”

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He vowed that as long as he is chairman, he will not sign any.

“But I will tell you that, in general, I think insider loans should be completely banned. Completely. There are other banks, you can go to other banks with that loan, why get it from your bank? I don’t understand it. So that’s our position. But it’s in our credit policy,” he added.