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Monday, July 31, 2017

2 Non-Interest Microfinance Banks get CBN Licence

The Central Bank of Nigeria (CBN) has granted operational license to 2 non-interest Microfinance Banks (NIMBs).According to CBN, the 2 granted NIMBs are Tijarah Microfinance Bank in Bauchi State and I-Care Microfinance Bank Ltd in Kano State.

Commenting, the acting president, National Association of Microfinance Banks (NAMB), Mr Nasiru Baba,  said the microfinance bank would drive the CBN’s financial inclusion across the country. “The Non-Interest Microfinance Bank will enhance CBN’s financial inclusion services and further enhance growth in small and medium enterprises (SMEs). Most of bank customers that are not considered with conventional banking will be taken care under the non-interest micro finance bank.  Because of their belief, some customers have refused to transact businesses with conventional bank,” he explained.

The 2nd vice president of NAMB, Mr Gold Kola, during the weekend said CBN was  providing a level playing field between the conventional and the non-interest microfinance banks. He noted that the non-interest microfinance banks has taken care Shariah and it was expected to boost the nation’s economy.

“Microfinance bank cannot operate without considering the cost of funds unless there are grants allocated to them. Those grants must always come with zero interest rate".

Director, financial policy and regulation department, CBN,Mr Kevin Amugo, had explained that the mandate of introducing non-interest (Islamic) microfinance banks in Nigeria was to promote a sound financial system. He explained in a signed circular that a guidelines was developed to provide a level playing field between the conventional and the non-interest microfinance banks and to address issues underpinning the operation of non-interest financial institutions (NIFIs).

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