The National Association of Microfinance Banks (NAMB) has described the recent revocation of 42 ailing microfinance banks (MFBs) licenses 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.
The National President of the Association, the umbrella body of all licensed MFBs in the country, Alhaji Yusuf Gyallesu, made the remark while fielding questions from journalists on the position of the group over the apex banks latest policy measure.
The microfinance banking expert said the CBNs action would not only help in sanitizing the MFB sub-sector but also aligned with the NAMB leaderships plan to conduct nationwide existence check (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 stabilize the financial system, however, said that with over 600 MFBs financially and operationally strong, customers should not entertain any fear about the safety of their deposits in the MFBs.
He promised that the NAMB, with support from the regulatory authorities, would continue to support its member-MFBs through capacity building programs, standardization of practice and consistent monitoring and evaluation to keep all microfinance banks strong, reliable and customer-friendly.
The NAMB President said: &Let me say that the revocation of the licenses of some distressed MFBs by the CBN is a welcomed 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 Nigerias sustainable economic development. NAMB is there to support its members such that their customers confidence in them continues to grow by the day.
&We want to assure Nigerians, particularly our investors, the Micro, Small and Medium Enterprises (MSMEs) owners, artisans, traders and indeed all ordinary Nigerians that the MFBs, being very close to them, will continue to serve their best interests at all times, Gyallesu assured.
He hinted that the leadership of the association was making arrangements to ensure that the proposed existence check of MFBs by the Association is finalized in the first quarter of 2021 fiscal year.
It would be recalled that the CBN had last month revoked the licenses of 42 MFBs over financial inadequacy and other lapses
