Obinna Chima
In consideration of the impact of the
COVID-19 pandemic on economic activities in the country, the
Central
Bank of Nigeria (CBN) has revised the deadline for compliance with the
minimum capital requirement for microfinance banks.
Owing to the development, the CBN
extended the deadline for compliance with the revised minimum capital
requirements for all categories of microfinance banks by one year.
The central bank stated this in a
circular dated April 29, signed by its Director, Financial Policy and
Regulation Department, Kevin Amugo, a copy of which was posted on its
website.
It explained that for microfinance banks
operating in rural, unbanked and underbanked areas (tier 2), they are
now expected to meet the N35 million capital threshold by April 2021 and
N50 million by April 2022. Also, for microfinance banks operating in
urban and high density banked areas (tier 1), with the new arrangement,
they are expected to meet the N100 million capital threshold by April
2021 and N200 million by April 2022, while state microfinance banks
shall increase their capital to N500 million by April 2021 and N1
billion by April 2022.
Similarly, National microfinance banks
are expected to meet minimum capital of N3.5 billion by April 2021 and
N5 billion by April 2022.
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