- CBN Grants Advans-La Fayette MFB National Banking Licence
Advans-La Fayette Microfinance Bank has secured a national microfinance banking licence from the Central Bank of Nigeria.
A statement from the bank said it was determined to build on its success over the years.
It said that as a member of the Advans Group, the bank was granted licence as a financial institution by the apex bank in 2012, and started offering a complete range of financial services and means of payment to its customers including savings accounts, current accounts and fixed deposit accounts.
“Now, it has been issued a licence to operate nationally,” it stated.
Over the years, the bank said it had grown to be one of Nigeria’s leading microfinance banks, fully committed to responding to the needs of micro, small and medium-sized enterprises, and other members of the public, who had little or limited access to formal financial services, through provision of tailored financial services in a sustainable and responsible manner.
While speaking on the acquisition of the licence, the Managing Director and Chief Executive Officer of the bank, Guillaume Valence, stated that micro, small and medium enterprises were the major contributors to growth and economic development, as well as the first employer in Nigeria.
He was worried that they lacked the financial support to develop their businesses.
Valence said, “They still lack both the necessary business and financial support to develop their activities. By supporting this population, Advans-La Fayette MFB is contributing to the national objective to reduce financial exclusion rate to 20 per cent by 2020.
“Moreover, Advans-La Fayette MFB has implemented the international best practices when it comes to client protection principles and contributes significantly to the financial literacy of its clients.”
He added that the bank had demonstrated great resistance and resilience to a challenging economic environment, and had consistently grown its client base and outstanding loan portfolio over the years.
The managing director explained that as of December 2018, the bank had disbursed 63,913 loans for a total of N27.9bn. He also disclosed that the group served more than 900,000 clients and employed over 6,800 employees, with a gross loan portfolio of €880m and a total of €510m deposits.
CBN to Extend Credit Risk Management System to OFIs
In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.
According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.
The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.
In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.
“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.
“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.
“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.
BoI Grows Assets by 78.8% to N1.86 Trillion
The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.
A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.
BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.
“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.
The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.
It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.
The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.
“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.
TAJBank Deploys NQR Solution To Ease Customer Transactions
TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.
The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.
A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.
“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.
This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.
In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.
Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.
The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.
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