Currently
micro finance bank are of two forms all licensed community banks in Nigeria
that m et EBN guidelines have been transformed to micro finance bank. The two
forms are (1)micro finance banks (MFBS) licensed to operate as a unit. These
are lither to community banks licensed to operate branches and /or cash centers
subjects to meeting the prescribed prudential requirements and availability of
free funds to opening branches cash centers the minimum paid-up
capital for
this category of banks is N20 million
for each branch. The
branching should be gradual
within a local council before it
spreads to other local councils
and state
ii. microfinance banks licensed to operate in a
state . these are MFBS licensed to operate in all parts of the state at once
without recour be to gradual coverage
(spead ) as in unit m\MFBS branches are
opended subject to meeting the
prescribed prudential requirements and
availability of free funds the minimum paid up capital for this category
of banks is N1 billion . about 6000
community banks have migrated to
micro finance banks by January
1st 2008 and there are several others that have been licensed to operate
(CBN 2008)