NDIC/CBN Examine Books of Microfinance Banks

LAGOS, June 21, (THEWILL) - The Nigeria Deposit Insurance Corporation (NDIC) has concluded the examination of books of Micro Finance banks in the country tagged ‘target examination’ to ascertain their financial health, an official of the corporation who spoke on conditions of anonymity said on Monday.

The official said that the NDIC concluded target examination on over 300 microfinance banks across the country.

He said though the Central Bank of Nigeria (CBN) has control over the microfinance banks, the CBN Governor Sanusi Lamido Sanusi recently said that the assignment of supervising more than 1000 of such banks was too much for the regulatory body, stating that the examination started in February this year

The official stated the report on the examination would be made public by the third week of July, stressing that the CBN would soon conclude its own findings into the remaining banks.

He said the target examination was conducted in three phases and the NDIC was currently working on the final stage.

"NDIC has concluded the first and second phases; the first phase was off site, involving the review of the monthly, quarterly and annual returns of the banks.

"During the second phase, we visited the microfinance banks physically to examine books and asked questions from officers on loans, advances, capital management and documentation.

"The third phase involves report writing and it would mean that the NDIC would wait for the CBN that would soon conclude its own investigations on the same industry," he added.

He said the NDIC and CBN were　ready to put in place policies that would better sort out the challenges facing the microfinance banking sector.

"According to him, the options include liquidation, injection of rescue funds and searching for new owners who can bring additional　fresh capital.