The Managing Director, Imowo Microfinance Bank, MfB, Ijebu Ode, Ogun State, Mr. Ajayi Abiodun, in this interview, said that the survival of a bank is largely determined by its financial performance which requires good management and corporate governance, rather than capital base. He also highlighted other issues affecting the sub sector and its operations.
Excerpts
By Providence Emmanuel
DO you think the MfBs really need recapitalization as required by the CBN?
I can say categorically that it is not recapitalisation that matter, what matters is the performance of each bank, aside that, they should allow banks to grow organically, not by forcing them to recapitalize. Some banks are in the rural area, they don’t need more than N20 million to perform. It is those banks that their capital has been eroded through bad debt that want the Central Bank of Nigeria, CBN to enforce recapitalisation. Some Unit MfBs do not have N50 million required by the CBN.
