Liquidity Company For
Banking Sector Coming
The
Mortgage Banking Association of Nigeria (MBAN) has agreed with
the International Finance Corporation (IFC) and the Central Bank
of Nigeria to establish a Liquidity Facility Company.
The MBAN President, Mr. Abimbola Olayinka, said in Lagos, that
the Liquidity Facility Company, to serve as a secondary market
for the Mortgage and Housing sector in Nigeria, would commence
operations in the second quarter of the year.
Olayinka said that MBAN was happy with its collaboration with
IFC toward achieving the Liquidity Facility window for the
sub-sector.
According to him, ’’60 per cent of the equity shares will be
raised by primary mortgage institutions as major shareholders
while others to contribute include the International Finance
Corporation/World Bank and other foreign investors.’’
He also said the CBN had signified interest in contributing 10
per cent of the equity shares while other financial institutions
will be responsible for other percentages.
Benefits
Olayinka said that Mortgage Liquidity Facility would develop the
primary mortgage market by providing funds to mortgage lenders
at lower rates and longer tenor.
He said it would also provide longer terms to mortgage lenders,
reduce mismatch between housing loans and sources of fund and
enhance the standardisation of mortgage loans.
Olayinka said when the company becomes operational; the Nigerian
Mortgage Market would experience a major revolution that would
put smiles on the faces of Nigerians.
He, therefore, urged all primary mortgage institutions in the
country to support the initiative.
NAN/Yinka
