Regulatory Alerts2007-07-19 | TED-FEM-FPC-GEN-01-89-07Important Notice on the Deadline for Conversion of Existing Community Banks (CBs) to Microfinance Banks (MFBs)
This notice serves as a reminder to all existing community banks (CBs) in Nigeria that the deadline for their conversion to microfinance banks (MFBs) is December 31, 2007. Banks are advised to submit their applications immediately if they have already met the minimum capital requirements of N20 million for a unit MFB or N1 billion for a state MFB. The deadline will not be extended or postponed under any circumstance. For banks that haven't reached the required capital, they should expedite their efforts to meet the criteria and complete all necessary documentation as stipulated by the Microfinance Policy and Guidelines. Additionally, one option for reaching the minimum capital requirement is through a merger between two or more community banks, provided they have jointly attained the minimum shareholders' funds. Further clarification on this policy can be sought from the Central Bank of Nigeria.