Bank chief backs calls for consolidation of microfinance banks

Posted by News Express | 21 May 2016 | 3,027 times

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Mrs Nwanna Joel-Ezeugo, the acting Managing Director, Accion Microfinance Bank (MFB), has backed calls by stakeholders for the consolidation of micro-finance banks in the country.

Joel-Ezeugo expressed the support in an interview with the News Agency of Nigeria (NAN) on Friday in Abuja.

NAN reports that participants in the 2nd symposium of the Nigerian Micro-Finance Banks on Thursday deliberated on ways of making the sector more viable and repositioning it to become easily accessible to potential customers.

According to her, the proposed consolidation will improve the banking sector and strengthen the machinery for regulation and supervision thereby averting the 2004/2006 scenario in the commercial banks.

“And the topic that is being treated today is a topic that if we all can take seriously both from the regulators point of view and all stakeholders the industry will become better.

“We are all witnesses to what happened in the banking industry between 2004 and 2006 and by the time the clean up was done, we now have better banks with bigger branches.

“If the consolidation takes place we will have bigger micro-finance banks that will be able to reach out to areas where they have not been able to reach.”

According to her, with consolidation in place, CBN would be in a position to better regulate the microfinance banks in the country.

“At the end of the day you will realise that with this consolidation, regulation (and) supervision will be more efficient.”

She also expressed optimism that the chief executive officers of MFBs would begin to consider mergers to make the banks stronger. (NAN)

•Photo shows CBN Gov. Mr Emefiele.


Source: News Express

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