Business
Microfinance Banks Seek Review Of CBN’s Directive
Ikeja Branch of National Association of Microfinance Banks (NAMBs), has appealed to CBN to review its directive that Unit microfinance banks should not operate cash outlets outside the bank.
Chairman of the branch, Mr Dele Oyekanmi, said last Thursday in Lagos, that the directive had affected the sub-sector.
Oyekanmi said that the outlets were the solid rock on which the Unit operator thrived.
According to reports, a unit operator is that who operates from one office, while the outlet is a meeting point between the unit operator and his customers.
Oyekanmi said that the directive that all transactions must hold at the head office had discouraged the customers from transacting business with the Unit operators.
“The situation is forcing customers to have divergent opinions on the viability of microfinance banks.
“Some customers are threatening to close their accounts for the fear of losing their money should the bank go under,” he said.
Oyekanmi said that the situation did not augur well for the operation of microfinance banks because an economy is built from the base to the peak.
According to him, those who make up the base are those in the grassroots.
“Microfinance operators take banking services to the people at market places because the traders do not have the luxury of time to go to the head office to withdraw or deposit money.
“Instead they do the transaction with us right in the cash outlets located in the market places,” he said.
Oyekanmi urged the CBN to revisit the issue for the unit microfinance banks to thrive.