Follow Us on Google
The National Association of Microfinance Banks (NAMB) has described the recent revocation of 42 ailing microfinance banks (MFBs) licences by the Central Bank of Nigeria (CBN) as desirable for the nation’s financial system stability, customers interest protection and overall growth of the economy.
President of the Association, the umbrella body of all licensed MFBs in the country, Alhaji Yusuf Gyallesu, stated this while fielding questions from journalists on the group’s position over the apex bank’s latest policy measure.
Gyallesu said the CBNs action would not only help in sanitising the MFB sub-sector but also aligned with the NAMB leadership’s plan to conduct a nationwide membership audit of the MFBs with a view to determining the soundness and state of operators in the country.
Gyallesu, who commended the apex bank for its unrelenting efforts to stabilise the financial system, however, said that with over 600 MFBs financially and operationally strong, customers need not entertain fears about the safety of their deposits in the MFBs. He promised that the NAMB, with support from regulatory authorities, would continue to support its member-MFBs through capacity building programmes, standardisation of practice and consistent monitoring and evaluation to keep all microfinance banks strong, reliable and customer friendly.
The NAMB boss said: “Let me say that the revocation of the licences of some distressed MFBs by the CBN is a welcome development, given the fact that most of the affected banks had, on their own, closed shops for some time now. We are happy about it because the measure aligns with our vision of making MFBs strong and functionally efficient so that the objectives of the National Financial Inclusion Strategy will be achieved”.
“We will continue to work with the apex bank and other stakeholders to strengthen the financial system by making all MFBs alert to their financial intermediation responsibility as catalytic agents of sustainable economic development…”
