Stakeholders in the Microfinance Banking segment of the nation’s financial industry have called for more clarity on the regulations and implementation of the Global Standing Instruction (GSI) framework that expected to to kicked off from August this year.
Stakeholdders made this call during webinar video conferencing on the “Implications of Global Standing Instruction & Sandbox Policies for MFBs” organised by Accion Microfinance Bank.
The discourse brought together key players in the financial services and fintech industry among other critical sectors in the ecosystem.
Speaking at the conference, the Managing Director/Chief Executive Officer of Accion Microfinance Bank, Mr. Taiwo Joda said the programme was an opportunity to brainstorm on the recent key developments and regulatory steps taken by the apex regulator, Central Bank of Nigeria (CBN) on the Global Standing Instruction guidelines and Sandbox policies as they affect the operations of the Microfinance Banks.
In his remarks, Head, Emerging Markets & Other Financial Institutions, Nigeria Inter-Bank Settlement Systems, (NIBSS) Mr. Samuel Oluyemi explained that the Exposure draft for Regulatory Sandbox which was released by the CBN on June 23, 2020 is geared towards promoting innovation, effective service delivery, healthy competition and the deepening of financial inclusion in the country.
He also stated that on July 13th, 2020, the CBN also issued a circular for the Global Standing Instruction framework, that is focused on facilitating an improved credit repayment culture, reduce Non-Performing Loans and set a watch-list for consistent loan defaulters.
Speaking on both the GSI and Sandbox regulatory provisions, Oluyemi made a strong case for the opinion of the Other Financial institutions, OFIs like the Microfinance banks to be considered in the implementation of the policy directive.