Regulatory Alerts2009-07-20 | OFID_02-2009Clarification on Branches, Cash Centres and Meeting Points and Limits of Investment in Fixed Assets for Operators and External Auditors of All Microfinance Banks
The Central Bank of Nigeria (CBN) has clarified the differences between branches, cash centers and meeting points for Microfinance Banks (MFBs). A branch is a location where full banking operations take place and offers a wide range of products and services. A cash center only receives and collects cash deposits from customers, with limited staff and minimal infrastructure. A meeting point is primarily for customer mobilization and interaction, without maintaining records or cash on-site. The CBN requires approval for branch and cash center opening, closing, or relocation, and prescribes that no more than 20% of an MFB's shareholders' funds can be invested in fixed assets. Mismatches between assets and liabilities are also discouraged to maintain liquidity and safety of the institutions.