CBN Unveils Guidelines for Operating Islamic Microfinance Banks

April 8, 2017
CBN Unveils Guidelines for Operating Islamic Microfinance Banks

CBN Unveils Guidelines for Operating Islamic Microfinance Banks

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN), in a circular dated Wednesday, April 5, 2017, released guidelines for the regulation of Non-Interest (Islamic) Microfinance Bank (NIMFBs) in the country.

The circular, signed by the apex bank’s Director in charge of Financial Policy and Regulation Department, Mr Kelvin Amugo, categorised the NIMFB into unit, state and national licence with minimum paid-up capital of N20 million, N100 million and N2 billion respectively.

He further stated that the minimum standard operating procedures, prudential ratios and other regulatory requirements that operators of NIMFBs are expected to comply with were specified in the guidelines.

Mr Amugo also explained that the framework was developed to provide a level playing field between the conventional and the non-interest micro-finance banks and to address issues underpinning the operation of non-interest financial institutions (NIFIs).

View the full guidelines below.

GUIDELINES FOR REG. AND SUP. OF NIMFB

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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