CBN should bar universal banks from microfinance banking?Crown Eagle MFB boss

Thursday, June 12, 2008

President/Chief Executive, Crown Eagle Microfinance Bank, Mr. Ben Taiwo Ojomo has called on the Cental Bank of Nigeria (CBN) to bar universal banks from microfinance banking sector.

Speaking in an interview with Vanguard at a pre launching of the bank, Ojomo averred that it is misplaced priorities for universal banks to establish microfinance banks as they are supposed to focus on competing globally with other banks.

Speaking on the challenges confronting the microfinance banking sector, he stated, ?And also we have loads of people now springing up even the big banks, the high street banks; they want to come back into microfinance. To me I don?t think it is right. It is misplaced priority.

The big banks should aspire to compete with the big banks globally like the Beckley Bank, Natwest Bank, or the Chase Manhattan Bank. But if they are dropping down to microfinance level it is misplaced priority. Because they should be loaning us money, they should be moving into the capital market doing something bigger.

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Source: Vanguard (link opens in a new window)