Following the inability of some microfinance banks (MFBs) to scale the recapitalisation hurdle set by the Central Bank of
But THISDAY learnt that there is an understanding between the
Speaking in a chat with THISDAY, the National President,
"Unit microfinance banks at a local government level should be allowed to operate additional units or branch within that local government area and that CBN has agreed on." He also explained that MFB's would not face any challenge, saying that the understanding with the central bank was for them to fit into any of the three categories.
Aku said: "So we don't have any problem on our side, the only thing is that banks are free to inject more funds and grow at their own pace," adding that "When the deadline was shifted to 2013, we met with the CBN and arrived at this amicable understanding that the policy should be reviewed such that Unit MFBs can operate. "If you are a Unit MFB and you want to become a State MFB or you want to have branches all over the state, it falls on you to raise the capital."
The central bank had taken active measures to ensure an efficient and effective microfinance delivery through the development of an appropriate regulatory and supervisory framework, based on the peculiar features and associated risks.
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