New MfB Guidelines: Sanction Regime Will Enhance Standards – CEOs

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CHIEF Executives of microfinance banks, MfBs, have said that the new sanction regime proposed in the draft revised guidelines will help to enhance standards in the sub-sector.

The Central Bank of Nigeria, CBN, had penultimate week, released the exposure draft for the revised guidelines for regulation and supervision of MfBs which contains about 36 offences and penalties.

For example, the draft guidelines stipulates that the CBN will impose fine of N500, 000 on any MfB found engaging in activities outside the approved scope of business, while the bank shall also forfeit the estimated profit from the engagement.

Commenting, Managing Director, Alekun MfB, Mr. Joshua Ukute, said that the guideline is a welcome development and industry friendly, stressing that the National Association of Microfinance Banks, NAMB will communicate its position on the draft guidelines to the CBN.

Ukute said, “Sanctions are like deterrent, just to make the practitioners do what is right, from NAMB, they are putting us on our toes to do what is right.”

Also, Managing Director, Supreme MfB, Mr. Jide Aremo, said that penalties are not meant for ill but to make people seat up by doing what is right.

Aremo said, “We are fully on ground for the conditions specified in the guidelines.

The penalties are just there for people to seat up, the industry has been known for 10 years, so it is high time for standards to be set so that those who want to survive may survive. But I pray that we survive.”

Source:- Vanguardngr

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