From BusinessDay on Fri, 11 Jan 2013 01:35:29
This is following the December 31, 2012 deadline for compliance with the Revised Microfinance Policy Framework, particularly in respect of the capital requirements for each category of MFB and existing branches/cash centres, among others.
Meanwhile, operators are appealing to the regulator to allow those that have the unit microfinance bank licence to operate branches and cash centres till 2014.
Olufemi Babajide, chairman, National Association of Microfinance Banks (NAMB), South West zone, told BusinessDay that capitalisation is an on-going thing but the issue is the categorisation of microfinance banks.
He said majority of microfinance banks are adequately capitalised to at least N20 million but need time to move to state licence which requires capital base of N100 million.
According to him, closing branches will impact negatively on the economy, saying that it will lead to unemployment and investors’ apathy.
“We are appealing with reason. They should see our reason. Staff are going to be unemployed, loans that are given to customers, how do we get them back. Depositors can come to you to deposit money but our loans are not collaterised.”
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