Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.
Doorstep and payday loan lenders escape interest rate cap: The Office of Fair Trading (OFT) has concluded there is no need to cap the interest rates and other charges levied by high-cost credit providers such as doorstep and payday loan lenders. At the end of a year-long review into a sector that typically targets those on low incomes who cannot access mainstream credit the OFT said that, while it recognised competition between suppliers was less effective than it might be, overall such lending markets worked “reasonably well”. The review looked at pawnbroking, payday loans, home credit and the rent-to-buy market. One of the more recent entrants to the high-cost credit market – payday loans – has come under fierce criticism from campaign groups and MPs [Guardian]
Operators still waiting for reforms in microfinance banks: Microfinance banks (MFBs) operators are eagerly expecting a major reform in the sub-sector after the liquidity crisis that practically brought the sector to its knee through the unprofessional attitude of most directors who ran the affairs of the banks. Mathias Omeh, president, National Association of Microfinance Banks, pointed out that the general reform carried out by the Central Bank of Nigeria (CBN) on Deposit Money Banks (DMB) was also needed in the microfinance industry, but on a low key, considering that the sub-sector was a small entity [Business Day]
Increase micro-finance banks’ capital base, stakeholders tell CBN: AS part of efforts to stabilise their operations, directors of microfinance banks have called on the Central Bank of Nigeria (CBN) to shore up the minimum capital requirement for the opening of the banks in the country. Promoters of microfinance banks currently require N20 million to start business which the directors said should be jacked up to about N50 million. One of the banks’ directors in Delta State, Mr. Nnamdi Okozi, said the move would enable the banks to operate optimally, profitably and effectively. Speaking shortly after the election of officers of the National Association of Microfinance Banks in Ogwashi-Uku, Delta State, the new chairman of the body, Okozi said [Compass Newspaper]
Christian group opens microfinance bank for less privileged: Resurrection Praise Ministries for Africa has opened Vining Microfinance Bank Ltd to help empower the less privileged and give succor to those at the grass root level. The Presiding Bishop, Mr. Samson Mustapha Benjamin, explained that this project was embarked upon to support development of the nation economically. “Microfinance banks are imperative in the development of the nation and all developed nations depend on their small and medium scale businesses to grow their economies. “Vining Microfinance Bank has come to support both small and medium scale businesses by providing funds to them”[Vanguard]