Monday, March 27, 2023
  • Login
No Result
View All Result
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
No Result
View All Result
The News Beam
Home News Business & Economy

CBN Lists Non-permissible Activities by Microfinance Banks

August 20, 2021
in Business & Economy, Economy, News
Reading Time: 2 mins read
0
A A
0
CBN Lists Non-permissible Activities by Microfinance Banks
Share on FacebookShare on Twitter

The Central Bank of Nigeria (CBN) has listed the non-permissible activities by Microfinance Banks.

Disclosing this in a Circular To All Microfinance Banks titled ‘Cessation Of Non-permissible Activities By Microfinance Banks’, the apex bank revealed that Microfinance Banks have gone beyond the remit of their operations, hence the need to clearly list their activities.

According to the apex bank: “The Central Bank of Nigena (CBN) has observed the activites of some Microfinance Banks (MFBs) that have gone beyond the remit of ther operating licenses by engaging in non-permissible activities especially wholesale banking, foreign exchange transactions and others,

“Given the comparatively low capitalization of MFBs, dealing in wholesale and/or foreign exchange transactions are a significant risk with dire consequences for financial system stability.

“It has therefore become imperative to remind all MFBs to strictly comply with the extant Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigena 2012 (the Guidelines).

“For the avoidance of doubt and consistent with the permissible activities of specialized micro-institutions:

1. MFBs are strictly prohibited from foreign exchange transactions.

2. MFBs are to primarily focus on providing financial services to retail and/or micro-clients.

3. Micro credit and retail transactions carried out by MFBs are limited to N500,000 per transaction for Tier 2 Unit MFBs and N1,000,000 for other categories.

4. Micro credit facilities shall constitute a minimum of 80 per cent of total loans portfolio for MFBs.

“The CBN will continue to monitor developments in the MFB sector and apply severe regulatory sanctions for breaches of extant regulations, including revoking the license of non-compliant MFBs (in line with Section 19 of the Guidelines).

Read Also: Bamboo, Other Fintech Firms React to Court’s Order to Freeze Their Accounts

Tags: CBNMicrofinance BanksNon-permissible Activities
ShareTweetSend
Previous Post

34-year-old Lesbian Kills Her Two Children to Spite Homophobic Grandmother

Next Post

Covid-19: 7 Reasons You Should Get Vaccinated

Related Posts

Politics

Guber Elections: Tech leaders launch Collate, a live-result viewing platform

March 16, 2023
69
Business & Economy

Bread and Cereal push Nigeria’s inflation rate to 21.91% in February

March 15, 2023
21
Business & Economy

CBN bows to Supreme Court, says old N200, N500, N1000 remain legal tender

March 13, 2023
52
Business & Economy

Naira scarcity: Nigerians use PoS for 113.5 million transactions in February 

March 13, 2023
13
Business & Economy

Naira Scarcity: Buhari says CBN has no reason not to comply with Supreme Court Judgement on old N500, N1000

March 13, 2023
67
Politics

2023 Elections: UK  threatens  visa ban against  electoral violence perpetrators

February 21, 2023
33
Next Post
Covid-19: 7 Reasons You Should Get Vaccinated

Covid-19: 7 Reasons You Should Get Vaccinated

7 Common Lies Ladies Tell Their Man

7 Common Lies Ladies Tell Their Man

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

  • Trending
  • Comments
  • Latest
How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

October 16, 2020
Covid-19: See List of Vaccination Centers in Lagos State

Covid-19: See List of Vaccination Centers in Lagos State

August 19, 2021
Banks suffer 11% reduction in new loans as customers resist interest rate hike

CBN reveals 9 Business Categories that recorded Increased Activity This Month

9
BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from 'Anonymous' hack

BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from ‘Anonymous’ hack

7

Guber Elections: Tech leaders launch Collate, a live-result viewing platform

March 16, 2023

Bread and Cereal push Nigeria’s inflation rate to 21.91% in February

March 15, 2023

Categories

  • Agriprenuers (12)
  • Books & Arts (7)
  • Business & Economy (442)
  • Capacity Building (25)
  • CDAs (2)
  • Community Champions (1)
  • Crime (196)
  • DEVELOPMENT (74)
  • Development Agencies (109)
  • Economy (319)
  • Education (193)
  • Entertainment (405)
  • Faith (55)
  • Finance (342)
  • Global (103)
  • Guest Columnists (17)
  • Health (242)
  • Health (56)
  • Industry (149)
  • LGAs (1)
  • Lifestyle (98)
  • MGDs (10)
  • News (2,305)
  • Politics (376)
  • Projects (2)
  • Relationships (70)
  • Security (164)
  • SMEs (15)
  • SPECIALS (88)
  • Sports (311)
  • Street Money (9)
  • Tech (138)
  • Teens World (3)
  • The Entrepreneur (26)
  • Uncategorized (74)
  • Your Community (33)
  • Youthprenuers (14)
No Result
View All Result
News
Politics
Business & Economy
Sports
Entertainment
Global

Development

Health
Education
MGDs
Development Agencies

Your Community

CDAs
LGAs
Projects
Community Champions

The Entrepreneur

Street Money
SMEs
Youthprenuers
Agriprenuers
Capacity Building

Specials

Lifestyle
Relationships
Books & Arts
Faith
Teens World
Guest Columnists

Follow Us

  • About Us
  • Contact Us
  • Terms of Usage
  • Privacy Policy
  • Advert Rates
  • Newsletters
  • Resources
  • Submit a Story
No Result
View All Result
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
  • Login

© 2020 The News Beam is the highest circulated and most read newspaper in Nigeria. The online portal of The News Beam is the most visited website in the world.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Subscribe With The News Beam