The National Association of Microfinance Banks (NAMB) has backed the recent revocation of 42 ailing microfinance banks (MFBs) licences by the Central Bank of Nigeria (CBN).
NAMB also described the action 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 licenced MFBs, Alhaji Yusuf Gyallesu, made the remark while fielding questions from journalists on the position of the group over the apex bank’s latest policy measure.
“Let me say that the revocation of the licences of some distressed MFBs by the CBN is a welcome 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.”
Gyallesu, who commended the apex bank for its unrelenting efforts to stabilise 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.
“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 Nigeria’s sustainable economic development. NAMB is there to support its members such that their customers’ confidence in them continues to grow by the day,” he said.
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