Regulatory Alerts2021-08-19 | FPRD/DIR/PUB/CIR/01/020Cessation of Non-Permissible Activities by Microfinance Banks
The Central Bank of Nigeria (CBN) has issued a circular to all microfinance banks (MFBs), reminding them to cease non-permissible activities, particularly wholesale banking and foreign exchange transactions. The CBN highlights the risks associated with such activities given the low capitalization of MFBs and emphasizes the need to comply with existing regulations. The CBN will closely monitor the MFB sector and enforce strict regulatory sanctions for non-compliance, including license revocation.
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