Development Bank procedures

statement structures);
3.7. maintain adequate capital as prescribed by prudential
regulations issued by the CBN;
3.8. maintain adequate liquidity in line with required levels
as prescribed by the CBN;
3.9. has in place adequate procedures for Anti-Money
Laundering(AML) and Counter Financing Terrorism
(CFT) in line with DBN requirements;
3.10. comply with KYC circulars issued by CBN and DBN
requirements;
3.11. has in place an Environmental and Social practice
compliant with DBN requirements;
3.12. comply with all existing and future applicable laws
and regulation on consumer protection, including
measures to review each customer’s ability to repay
before entering the lending agreement;
3.13. have an arrangement with at least two credit bureaus;
3.14. have a risk profile acceptable to DBN;
3.15. have an adequate portfolio quality in line with the
PFI’s criteria
3.16. conduct, maintain and enforce adequate internal
audits and controls for its specific risk profile;
3.17. have adequate management information systems; and
3.18. demonstrate commitment to serving the MSME sector
by having in place, a satisfactory MSME/Small
Corporate loan approval processes and risk
management procedures.
4. The PFI shall not be deemed to be in good standing, and
ineligible for financing from DBN if the PFI:
4.1. is under CBN’s holding action
4.2. receives a qualified audit opinion on its most recent
audited financial statements
4.3. if the PFI, is unprofitable for four (4) consecutive
quarters at any time following its start-up period which
shall be three (3) years from the date it commenced