The National Association of Microfinance Banks,NAMB, has advised operators of microfinance banks to stop giving out huge loans to individuals, to avoid the depletion of their shareholders’ funds.
Its Edo State Chapter Chairman, Isaac Akowe, said in Auchi, near Benin, that such loans could also lead to bad debt.
Akowe, who is the Managing Director of Auchi Microfinance Bank Limited, said more microfinance banks in the country might collapse due to high cost of operations.
He said the reason many microfinance banks were struggling to survive was because they were competing with commercial banks.
