ABCON's proposed merger of BDCs, not recapitalization of the industry — Gwadabe

THE Association of Offices Of Change The operators of Nigeria (ABCON) East while searching THE merger of several Offices Of Change (BDC) the operators not recapitalization of THE industry, THE band announcement on Thursday.

THE recommendation East has Effectively help BDCs business governance And rules of engagement with THE summit bank.

THE merger option was adopted For class 'A' BDC In 2007/2008, which titled them has $1 million weekly allocation with N500 million capital basis.

Related Posts

THE band called For similar business model through mergers And consolidation instead that downright goodbye of capital base of each operator.

He said Central Bank of Nigeria (CBN) has regulate emerged BDC Since THE consolidation exercise.

Each of THE CBN License BDC East capitalized has THE adjust of N35 million And should be allowed has gladly consolidate among themselves.

ABCON President, Alhaji Aminu Gwadabé, WHO broken THE news In Lagos, said THE band Never request For to the top goodbye of N35 million OBLIGATORY regulatory approved capital base For each BDC, but A merger of has less ten BDC has form new capital of N350 millions.

THE move, he said, would be improve THE scope of operation And diversification of sources through miscellaneous the Windows And reduce regulatory pressures.

He said merger of several BDC In A stronger entity will prepare them For upper role In THE financial system, including handling of diaspora fund transfers Or other off the coast funds attracted has THE economy has deepen Forex to access has THE retail END of THE market.

Gwadabe said THE merger of several commercial banks In 2004 consolidation exercise by THE summit bank East A example THE summit bank could adopt For THE BDC has streamline their Numbers And here easily handy the operators For maximum impact In THE stranger exchange market.

He said: “ABCON rejects reports call For BDC recapitalization by A section of THE media. THE media quoted We out of context And We are functioning has put appropriate stories".

Continuing, he said THE BDC are while searching several mergers In THE industry has here A reduced number of the operators For more effective regulations.

"Instead of allowing each BDC has be recapitalized has THE Rising propose by THE Economic Advisory Committee which will likely lead has THE extinction of a lot of OUR members as he arrived In 2014 When A downright goodbye of capital base was THE only option.

We Also informed that THE CNB should not issue any of them Licence during THE period has avoid adventure capitalists socket on THE business Since THE Already skillful operators.

He said with on 40,000 Nigerians employee by THE sub-sector, there was need has support THE BDC business For supported economic growth And job generation.

Gwadabé said stranger coins treaty In by BDC are derivative Since private sources And such other sources which can include THE CNB window as determined by THE CNB Since time has time For THE aim of funding Business Journey Allocation (BTA), Staff Journey Allocation (PTA), School Costs Payment abroad, Medical, mortgage, staff House fund transfers And subscription.

He said ABCON has has been For years, training Compliance Officers has ensure they are awareness with What East required of them, especially on A monthly interpretation of results And follow up illicit capital flows through compliance.

According to has Gwadabé, BDC are conform with THE interpretation of suspicious transaction reports as directed by NFIU, CBN, And EFCC.

He said BDC are required has conform with all existing rules & regulations prescribed by THE CBN, while THE CNB closely supervises And monitors their operations.

"In compliance with THE provisions of Bank And Other Financial Establishments (BOFIA) as amended, each BDC makes Back has THE CNB In prescribed format And In THE deadline stipulated by THE CBN. THE recordings of THE BDC are do easily available has THE CNB examiners as And When request including wearing out customer due diligence, business governance And tax Back," he said.

He said that ABCON has on THE years established himself as A key player In THE BDC industry, And has Also do several commitments And sacrifices has ensure that THE sector keep on going has prosper despite all chances.

"THE acknowledgement of THE role of BDC In Nigeria financial sector remains THE First of all stage has building A sustainable And viable Forex walk th...