Stakeholders endorse CBN’s certification programme for MFBs

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Stakeholders endorse CBN's certification programme for MFBs
24 January 2010, 12:12 am

Participants of the 4th annual international microfinance conference organized by the Central Bank of Nigeria (CBN) in Abuja rose from their meeting at the weekend endorsing the ongoing certification programme for the operation of Micro Finance Banks (MFBs).The CBN initiated the programme hoping the initiative would enhance the acquisition of appropriate operational skills on microfinance business models and practice. Since the launch of the nation's new Micro Finance policy in 2005, operators of the MFBs have continued to deviate from the ideals of running viable institutions that would meet the needs of those who lack access to formal financial services.The CBN is however undertaking a renewed effort at informing the rolling out of a fresh set of guidelines to the operation of the MFBs, including the certification programme.Under the new plan, all managing directors of the micro finance institutions are required by the apex bank to pass the certification exams or quit."The train the trainers programme has been concluded to select trainers of MFC operators. Training of MFC management staff and their certification would commence in the second quarter of 2010. All managing directors of microfinance banks that fail to scale through the certification exams after two attempts would cease to manage the banks" Lamido Sanusi, CBN governor had told participants at the opening ceremony .Apart from approving the certification programme, the participants also urged the National Assembly to enact a law mandating state governments and local councils to disburse one percent of their monthly budgetary allocation through the Micro Finance Banks.This, they believe would help fund the Microfinance institutions and keep them in business..They also asked the CBN to prevail on states and local councils to disburse their funds through the MFBs in a state and not through a selected few.The conference which was organized to address the numerous challenges at the lowest level of the financial system was attended by participants from the Presidency, National Assembly, State Governments, Deposit Money Banks, Microfinance banks, development partners, the Organized, Private sector, the media among others.In a communiqué issued at the end of the conference, over 1,003 participants at the conference urged the MFBs to adopt tested and contemporary risk management practices covering strategic, financial and operational risks.The participants equally urged the CBN to encourage government agencies to allow MFBs to collect taxes and pensions on their behalf since they operate at the grassroots.They further advised the apex bank to expedite action in issuing final license to qualified MFBs as those having provisional license are considered not credible.

Source: Businessday :: News you can trust

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