Central Bank of Nigeria to Focus on Microfinance Banks to Avert Problems

The Central Bank of Nigeria (CBN) has said that it will soon focus its searchlight on operations of Microfinance Banks (MFBs) to avert problems in the sub-sector. CBN's spokesman Muhammed Abdullahi said that the apex bank is disturbed over the "emerging problems" in MFBs. There are many other unregistered MFBs besides the 815 registered ones in operation and CBN said it will do something about them.

Microfinance operator Charles Emmanuel said that close supervision into the financial statements of most MFBs will reveal anomalies in terms of un-serviced debts and liquidity even more than what is happening in the core financial system. He added said that many MFIs lack adequate liquidity to operate, adding that non-adherence to the provisions of the microfinance regulatory and supervisory framework in terms of deposit and loan management are major challenge which need to be addressed.

Related news: CBN Discovers Five Fake MFBs in Lagos, Osun (15 Sept 2009)

Read Full Article

About Us  |  Contact Us  |  Partners  |  Help  |  Site Map  |  Terms and Conditions  |  Privacy Policy  |  Manage Subscriptions

© CGAP 2012 ALL RIGHTS RESERVED