The Central Bank of Nigeria (CBN) has not yet made a decision on the future of Kuda Bank and other licensed microfinance banks. However, the CBN has been reviewing the operations of these banks in recent months, and it is possible that the CBN will take some action against them.
The CBN has been concerned about the rapid growth of microfinance banks in Nigeria, and it is worried that some of these banks may not be adequately capitalized or regulated. The CBN has also been concerned about the high levels of non-performing loans at some microfinance banks.
Kuda Bank is one of the most popular microfinance banks in Nigeria, and it has been growing rapidly in recent years. However, Kuda Bank has also been criticized for its high levels of customer complaints. In September 2022, Kuda Bank declared another loss of N6.1 billion ($14.2 million) in its 2021 financial statements.
The CBN is likely to take a number of factors into account when making a decision on Kuda Bank and other licensed microfinance banks. These factors include the banks’ financial performance, their level of capitalization, their compliance with regulations, and the number of customer complaints.
The CBN is also likely to consider the impact of any action it takes on the Nigerian financial system. The CBN does not want to take any action that could destabilize the financial system or harm depositors.
The CBN is expected to make a decision on Kuda Bank and other licensed microfinance banks in the coming months. However, it is still too early to say what the CBN will decide.
