Association Canvasses Merging Of MFBs

Mr Valentine Whensu, the Chairman, National Association of Micro Finance Banks (NAMB), Lagos State chapter, recently advised its members with weak capital base to merge to become stronger. Whensu told our correspondent in Lagos that the association had embarked on capacity building programmes in Micro-Finance Banks (MFBs) to enhance the viability of the sector.

“There will also be market restructuring and visibility programmes because if we don’t bring ourselves out, people will not know what we are doing,” Whensu said.

He warned micro finance banks not to tamper with depositors’ fund or encourage insiders’ abuse and urged members to report erring MFBs to relevant authorities.

He also urged the Federal Government to support MFBs to enable the banks fulfill its mandate of helping in poverty alleviation.

“There is no basic funding to support the banks in spite of the nature of the business and lack of collateral on our loans,’’ he said.