March 07, (THEWILL)- The Central Bank of Nigeria (CBN) has mandated Microfinance banks, Primary Mortgage Banks (PMBs) and Development Financial Institutions (DFIs) to ensure they submit their financial returns monthly through the FinA application or risk sanctions.
The CBN disclosed this in three separate letters signed by its Director of Financial Policy and Regulatory department, Valentine Ururuka, to the financial institutions under the categories listed.
According to the letter, the CBN warned that all financial institutions under the categories listed should submit the monthly FinA on or before the 5th of the next month.
For Microfinance banks, it stated,“the Central bank of Nigeria has observed with dismay the late and non-rendition of periodic returns on FinA by Microfinance banks. All MFBs are therefore reminded of the provisions of section 24 of the Banks and Other Financial Institutions Act (BOFIA), 2020, and other extant regulation on timely rendition of regulatory returns.
“Consequently, all MFBs are to ensure that their monthly FinA returns are submitted on or before the 5thday after the month end. Where the 5thday falls on the weekend or public holiday, returns shall be submitted the previous work day.
“You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned.”
The bank also sent similar letters to Primary Mortgage banks and Development finance institutions. For mortgage banks, it stated,“the Central bank of Nigeria has observed withdismay the late and non-rendition of periodic returns on FinA by Primary Mortgage Banks. All PMBs are therefore reminded of the provisions of section 24 of the Banks and Other Financial Institutions Act (BOFIA), 2020, and other extant regulation on timely rendition of regulatory returns.”
“Consequently, all PMBs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the month end. Where the 5th day falls on the weekend or public holiday, returns shall be submitted the previous workday.”
The same warning on failure to render the regulatory returns at the stipulated time was also issued to both PMBs and DFIs.
The CBN has intensified supervision of these categories of financial services institutions to strengthen their performance towards meeting the needs of small businesses.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
