Total Assets Of 882 Microfinance Banks Hit N1.35tn

The total assets of Nigeria’s microfinance banks increased to N1.35tn by the end of September 2021, from N856.3bn recorded in September 2020.

This was contained in a report by the Central Bank of Nigeria on ‘Microfinance Banks’ Account Assets’ quarterly bulletin obtained by our correspondent.

Also, figures obtained from the CBN on ‘List of Licensed Microfinance Banks’ showed that the number of microfinance banks rose from 876 as of June 30, 2021 to 882 as of December 31, 2021.

The CBN had, in October 2018, ordered the MfBs to shore up their capital.

In a circular to the MfBs, the CBN said the banks were contending with challenges such as inadequate capital base, weak corporate governance, ineffective risk management practices, dearth of requisite capacity and mission drift.

It urged them to explore the possibilities of mergers and acquisitions and direct injection of funds.

While the new capital took effect for new application for MfBs licences, existing banks were given till April 2020 to meet the new requirement.

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