MFBs: CBN Plans to Study Bangladeshi Model
- By Simeon Ogoegbulem
- Published July 12th, 2010
- News
- Unrated
THE Central Bank of Nigeria (CBN) is to send a study team to Bangladesh to understudy the workings of the microfinance sector of the country. Bangladesh, an Asian country, has the global reputation of operating the best microfinance industry in the world.
Analysts said the microfinance sector helped the Asian country to mitigate the devastating effects of the recent global financial crisis. The country also has an independent regulatory agency for the microfinance sub sector of the economy.
Nigeria has been battling with its microfinance sub sector in the last two decades. Currently, there are about 1,000 licensed MFBs. However, about 30 per cent of that number are said to be distressed.
Many depositors of the MFBs are finding it increasingly difficult to access their deposits. Some of the promoters and managers of the MFBs are said to have abandoned their core mandate of facilitating financial services to the active poor and dabbled into areas they lack core competence.
Mallam Sanusi Lamido Sanusi, CBN governor, last week in Abuja, disclosed that the apex bank will raise a team to Bangladesh to understudy the country’s microfinance sub sector. Sanusi said the study would help the apex bank to fine tune its policies towards the microfinance sub-sector for it to contribute more effectively to the overall development of the economy.
Analysts said the microfinance sector helped the Asian country to mitigate the devastating effects of the recent global financial crisis. The country also has an independent regulatory agency for the microfinance sub sector of the economy.
Nigeria has been battling with its microfinance sub sector in the last two decades. Currently, there are about 1,000 licensed MFBs. However, about 30 per cent of that number are said to be distressed.
Many depositors of the MFBs are finding it increasingly difficult to access their deposits. Some of the promoters and managers of the MFBs are said to have abandoned their core mandate of facilitating financial services to the active poor and dabbled into areas they lack core competence.
Mallam Sanusi Lamido Sanusi, CBN governor, last week in Abuja, disclosed that the apex bank will raise a team to Bangladesh to understudy the country’s microfinance sub sector. Sanusi said the study would help the apex bank to fine tune its policies towards the microfinance sub-sector for it to contribute more effectively to the overall development of the economy.
