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LequteMan
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The Central Bank of Nigeria, CBN has granted a national license to the Development Bank of Nigeria, DBN, to begin operations.
According to a statement from the federal ministry of finance, CBN approved the license on Tuesday in a letter to the Managing Director/Chief Executive of Officer of DBN.
The license makes the DBN a Wholesale Development Finance Institution. As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs.
MSMEs contribute almost half of Nigeria's Gross Domestic Products (GDP) ( about 48.47 percent ) but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).
According to a statement from the federal ministry of finance, CBN approved the license on Tuesday in a letter to the Managing Director/Chief Executive of Officer of DBN.
The license makes the DBN a Wholesale Development Finance Institution. As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs.
MSMEs contribute almost half of Nigeria's Gross Domestic Products (GDP) ( about 48.47 percent ) but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).
