The Central Bank of Nigeria has revoked the operating licenses of 46 Microfinance Banks with effect from Wednesday owing to various infractions.
Mrs. Sidi-Ali Hakama, acting Director, Corporate Communications Department said the measure was informed by the powers of the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.
The order said the action became necessary owing to various reason namely insufficient assets to meet liabilities, closure of operations without the CBN approval, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses.
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“The revocation of the licenses is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements.
The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement said.
Crediblenewsng.com
