Originally published: May 9, 2008
Source: This Day
The Central Bank of Nigeria (CBN) has announced that, in addition to monetary penalties, it will remove and blacklist the managing director of any microfinance bank that fails to render monthly returns promptly or makes false or late renditions two consecutive times. The apex bank regulatory authority asserted that repeated failure to render the returns for a period of six months by any microfinance bank would amount to the revocation of the bank’s operating license.
Reading the riot act, CBN Governor Chukwuma Soludo, stated that all the affected banks are required to submit monthly returns to the Director, Other Financial Institutions Department (OFID) of the apex bank as well as to Director, Special Insured Institutions Department of the Nigeria Deposit Insurance Corporation (NDIC) not later than 10 working days after the relevant month. He added that failure to render the returns as well as refusal to submit audited financial statements and the abridged version to the CBN for approval not later than four months after the end of the financial year will attract the suspension of the bank's chief executive for one month in the first instance.
As of April 15, 2008, only 428 had submitted returns for February. OFID Director Sam Oni noted that the situation has improved with 88% of the MFBs rendering returns as of date. According to him, only 77 out of 752 microfinance banks have not submitted their returns.
Read the complete article: CBN Threatens Microfinance MDs Over Monthly Returns (This Day)
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