Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home General News

CBN releases new capital base, sanctions for Microfinance Banks in new draft guidelines

Fakoyejo Olalekan by Fakoyejo Olalekan
March 5, 2020
in General News, Politics
parallel market, Covid-19: N3.5 trillion disbursed as stimulus package for the Nigerian economy, CBN Vs NESG: Waving the white flag for the benefit of Nigerians, Exchange Rate Unification: CBN devalues official rate to N380/$1, Nigerian banks have written off N1.9 trillion impaired loans in past 4 years, CBN sandbox operations, Stirling Trust Company Limited, Key highlights of the October 2020 Business Expectations Survey Report, A Total of N3.5 trillion was disbursed in the wake of the COVID-19 pandemic, in addition to several other interventions to reflate the economy - CBN, BOFIA 2020: Steps forward or backwards for Nigerian banks, Total credit to the economy rose to N19.54trillion – CBN Governor

CBN Governor Godwin Emefiele

Share on FacebookShare on TwitterShare on Linkedin

Microfinance Banks have received new revised supervisory and regulatory guidelines from the Central Bank of Nigeria (CBN) that increase their minimum capital and stipulate sanctions for banks that divest from their approved business.

The revised supervisory and regulatory guidelines stipulate that any bank that operates outside its approved business would be fined the sum of N500,000 and such will forfeit its estimated profit.

Also, before any Microfinance Bank restructures or performs any reorganisation, it must receive the CBN’s approval or risk N500,000 fine.

CBN releases new capital base, sanctions for Microfinance Banks

On the issue of capital base, the CBN maintained the minimum capital for a unit Tier 1 Microfinance Bank at N200 million, stating that by April 2020, the Tier 1 must have an N100 million capital threshold and by April 2021, the capital threshold must be N200 million.

Also, CBN increased the capital base for Tier 2 unit Microfinance Bank to N50 million. This means, by April 2021, the Tier 2 unit firms must have a capital threshold of N50 million, but this year, by April 2020, the capital threshold should be N35 million.

(READ MORE: CBN’s Emefiele congratulates Dr Kingsley Obiora as he assumes office)

For the state-based Microfinance Banks, the CBN said their capital by April 2020 should be N500 million and N1 billion by April 2021, but for national microfinance banks, by April 2020, they must have a capital of N3.5 billion and N5 billion by April 2021.

The last time such recapitalisation occurred for Microfinance Banks was in 2018 when the minimum capital base for national microfinance banks was N2 billion; N100 million for state microfinance banks, while the unit microfinance banks had a minimum capital requirement of N20 million.

According to the CBN, the changes were made to improve the performance of the Microfinance Bank in the financial industry.

“The need to reposition and strengthen MFB towards improved performance had become apparent as revealed from the report of a recent review of the subsector.

“Accordingly, the 2012 guidelines have been reviewed to strengthen and complement other on-going reform in the MFB sector. An exposure draft of the review guidelines is hereby issued for comments and observations.”

Related

Tags: CBNMicrofinance Banks

Comments 2

  1. Terkaa atee Joseph says:
    July 20, 2021 at 2:06 am

    I need a loan

    Reply
  2. Hadiza ibrahim says:
    November 23, 2021 at 1:46 am

    I want the loan

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Eco Bank
Access Bank
Bankers Committee
First bank


Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Kwakol Markets




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • 2021/2022 UEFA Champions League: See how much winner will rake in prize money
    • INEC extends primary election deadline to June 9
    • Gains from Airtel pushes NGX ASI above 54,000 basis points

    Follow us on social media:

    Recent News

    2021/2022 UEFA Champions League: See how much winner will rake in prize money

    2021/2022 UEFA Champions League: See how much winner will rake in prize money

    May 27, 2022
    Voter registration: IVED will eliminate PVC fraud – INEC

    INEC extends primary election deadline to June 9

    May 27, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com