CRC Credit Bureau Limited has highlighted ways by which the Deposit Money Banks in the country can avoid losses as a result of bad debts.
The company, while announcing the launch of a new product in a statement, said most banks in the country had yet to recover from the losses incurred over the years as a result of such debts.
Speaking at a public forum organised by the CRC Credit Bureau in association with Dun and Bradstreet Credit Bureau in Lagos, experts drawn from the financial services and related sectors were said to have noted that most of the banks were exposed to a lot of risks, especially from the oil and gas sector.
The Managing Director/Chief Executive Officer, CRC Credit Bureau, Mr. ‘Tunde Popoola, was quoted as saying that the challenge confronting most of the banks was how to reduce their risk portfolio given the bad debts they incurred these past years, especially at a time they had more risk assets.
He said the CRC Credit Bureau had been able to develop fool-proof measures that could help the banks contain the incidence of bad debts.
According to Popoola, what banks need to do to reduce the incidence of bad debts is to be more circumspect in the way they spread risks.
“Most of the toxic debts within the banking sector happened because they were done without proper due diligence analysis as it were. But that can be taken care of with our products and services like I-CON Plus, which can help to build a good credit industry,” he said.