Central bank of nigeria new microfinance bank capitalization
According to the Central Bank of Nigeria (CBN), the new minimum capitalization requirement for microfinance banks in Nigeria is N2 billion (approximately $5.3 million USD).
This new requirement was announced in 2020 as part of the CBN's efforts to strengthen the microfinance sector and improve its resilience. The increased capitalization requirement is intended to ensure that microfinance banks have sufficient resources to meet the needs of their customers and to withstand potential risks and challenges.
Here are some key details about the new capitalization requirement:
- Minimum capitalization: N2 billion (approximately $5.3 million USD)
- Effective date: The new requirement took effect on January 1, 2020
- Compliance deadline: Microfinance banks were required to meet the new capitalization requirement by December 31, 2020
- Eligibility: The new requirement applies to all microfinance banks licensed by the CBN
- Consequences of non-compliance: Microfinance banks that fail to meet the new capitalization requirement may face penalties, including fines, suspension of operations, or revocation of their licenses.
It's worth noting that the CBN has also introduced other measures to strengthen the microfinance sector, including the introduction of a new microfinance bank licensing framework and the establishment of a microfinance bank supervisory committee.