Complying with Regulatory Authorities of Microfinance Banks
Tunde Raji - June 2, 2016

Regulatory authorities of microfinance banks in Nigeria comprises of Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Federal & State Internal Revenue Service, Economic Financial Crime Commission, and Chartered Institute of Bankers of Nigeria.

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7 thoughts on “Complying with Regulatory Authorities of Microfinance Banks”

  1. There are some regulations which are not difficult to comply with especially the 5% investment in treasure bill, single obligor limit, capital reserves, liguidity, etc but the major one is the provisions for classified loans which the regulators must find a way of monitoring them.

  2. The Monthly reports are not difficult to comply with compare to where adjustments have to be made. You know the regulation allows for 5% PAR which is not always realistic but most MFB window dress it so as not to be penalized.

    1. Sunday, I understand you but in your previous comment you said ” the major ones are the classified loans which the regulators must find a way of monitoring them”
      I do not quite agree with you on the above assertion. Whenever CBN or NDIC conducts routine examination on MFB s, they always request for “schedule of loan portfolio” which consists of performing & non-performing loans.
      They also requests for ” management report” which always show highlight of loan portfolio provisioning as follows:

      For Performing : 1% of total performing loan portfolio

      For Non-performing
      Pass & watch : 5% of total non-performing loans.

      Substandard : 20%

      Doubtful : 50%

      Lost : 100%
      With this analogy, I think regulatory bodies do monitor classified loans. That’s my personal opinion. Regards

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