MICROFINANCE BANKING PRINCIPLES, CONCEPTS, AND GUIDELINES FOR SUCCESS
Live-Online Training: N135,000
Classroom Training: N 165,000
3 - 4 participants: 5% discount
5 or more participants: 10% discount
(Available also for Customized Training by Duration, Venue & Fee)
Programme Description
Microfinance can simply be defined as providing financial services to the poor, who are traditionally not served by conventional financial institutions. Microfinance can also be seen as the provision of microloans to poor entrepreneurs and small businesses lacking access to banking and related services. The growing awareness of the potential of microfinance in poverty reduction, economic growth, and development coupled with the emergence of several highly successful and fast-growing Microfinance institutions (MFIs), has evolved to a point where, the broader definition of microfinance is the provision of a broad range of financial services such as Savings, Loans, Payment services, Money transfers, and Insurance to poor and low-income persons, Households and their micro-enterprises.
Three features distinguish microfinance from other formal financial products. These are
1) The smallness of the loans advanced and /0r savings collected.
ii) The absence of Asset-based collateral, and
iii) Simplicity of Operations.
Course Objectives
By the end of this training, participants will:
- Be able to explain what microfinance is and the principles of microfinance.
- Be able to know the history of microfinance in Nigeria and other African countries.
- Be able to know that the principal objectives of the MicrofinancePolicy is to create MFBs that are financially sound, stable, self-sustaining and integral to the communities in which they operate.
- Be able to know how to provide financial services for the unserved and vulnerable groups.
- Be able to know how to promote synergy and mainstreaming of the informal sub-sector into the National financial system.
- Be able to enumerate the history and evolution of cooperatives andbe able to know how to Create Groups/Unions /Societies and other informal Associations for effective microfinancing.
- Be able to know that access to financial services by micro andsmall enterprises has been recognized as a critical element in promoting private enterprise and empowering the most vulnerable groups.
Course Contents
DAY ONE
Introduction to the Concept and Principles of Microfinancing.
- Concept of Microfinance Banking.
- What is Microfinance.
What is NOT Microfinance
- Characteristics of service delivery mechanism.
-Types of Microfinance institutions.
- Principles of Sustainable Microfinance
- Microfinance Institutions in Nigeria
Market Analysis
- Support of Government and other Donor Agencies.
- NGO Microfinance institutions
- Formation, Principles and Cooperative Societies
- The Principles of Cooperatives
- Voluntary and Open Membership
- Differences and Similarities among Microfinance Banks (MFB)
Non- Regulated Microfinance Institutions MFIs) Cooperative Societies
and Deposit Money Banks.
- Characteristics of MFB Clients
- Innovative Lending methodologies as Key to Success.
Six Degrees of Outreach
- Worth
- Scope
- Cost
- Length
- Breadth
- Depth.
DAY TWO
Introduction to Operational, Legal and Regulatory Framework
- Different regulations and regulatory bodies pertaining to finance in general and microfinance.
- Microfinance policy, its objectives and basic outline as well as the supervisory and regulatory guidelines for microfinance.
- Categories of Microfinance Banks.
Understanding the Prudential Guidelines.
- Understanding the Prudential Guidelines.
- Provision for classified Assets.
- Capital funds adequacy ratios.
- Limit of Lending to a single borrower and related party.
- Maximum EquityInvestment HoldingRatios.
DAY THREE
Special Prudential Standards
Unsecured lending Limits
- National Microfinance Development strategy and National Financial Inclusion Strategy.
- Banks and Other financial Institutions Act(BOFIA)
- Central Bank of Nigeria (CBN) Act/Circulars.
- Nigeria Deposit Insurance Corporation (NDIC) Act.
- Evaluating Other Banking Regulation and Supervision Frameworks.
Fees
VIRTUAL TRAINING: N135,000
CLASSROOM TRAINING: N165,000
3 – 4 participants: 5% discount
5 or more participants: 10% discount
Training Session: 8.30 a.m. – 3.30 p.m.