By Amaka Agwuegbo
Chairman of Enugu-based Umuchinemere Pro-credit Micro Finance Bank (UPMFB), Monsignor Prof. Obiora Ike, has called for the establishment of a clearing house for microfinance banks (MFBs), saying it would make running of the MFBs faster.

Reiterated his earlier call for microfinance banks to have a Clearing House or to be included in the one presently for the universal banks, Monsignor Ike insists that Nigeria has come to an age where the Central Bank of Nigeria (CBN), as part of its banking reforms, should think of efficiency and effectiveness by having a middle institution that controls MFBs.

“A Clearing House for MFBs is sine qua non because it makes business faster, easier, gives the MFBs authority and helps them to sign and honour their cheques, do all their e-payments and convert to an e-environment in the world in which we find ourselves today.”

He alleged that for MFBs to go to CBN through the correspondence banks was a long difficulty for them because the discrimination.

“During the era of Community Banks, there was a national Board that was set up to look after them, but now we are MFBs, we are put under the CBN and don’t go to Clearing directly but through correspondence banks that don’t treat us well, but are only interested in the huge deposits they get from the MFBs.

“MFBs do the work at the grassroots while the correspondence banks just come to collect the money from them. I do not see why government or CBN can’t decentralize doing the big things and allows competence at the subsidiary level of those who have the competence and authority to manage it. It’s high time they made it clear that MFBs be allowed to go through a Clearing House.”
Commending the establishment the Asset Management Corporation of Nigeria (AMCON), Ike has been described as a welcome development which would help banks, including MFBs, offset their toxic loans for credit to continue their business without going under.

“The establishment of AMCON is the right thing to do to ensure that failed assets within a bank’s business are offset in an asset management company that buys it off, trades it off, and recoups the bank with capital to continue to do its business.”

“MFBs, being financial institutions as the universal banks, can be properly guided to package their goods well so as to be accommodated by AMCON.