Regulatory Alerts2016-05-11 | FPR/DIR/GEN/CIR/01/007Exposure Draft Guidelines on the Regulation and Supervision of Non Interest (Islamic) Microfinance Banks in Nigeria
The Central Bank of Nigeria (CBN) has released draft guidelines for the regulation and supervision of non-interest (Islamic) microfinance banks in Nigeria. The guidelines aim to offer the public an alternative microfinance banking system that operates based on the concept of profit and loss sharing rather than charging interest. The introduction of non-interest microfinance banking services is expected to bring individuals, communities, and corporations that are reluctant to patronize conventional microfinance banks into the formal sector. The guidelines outline requirements for ownership, licensing, permissible and non-permissible activities, board and management, financing modes and instruments, funding, accounting, and other related matters.