Optimizing the Potentials of Microfinance Banks for Economic Development Itemeh Godspower Godwin Student, Department of Finance, University of Lagos, Nigeria Online published on 4 April, 2015. Abstract The research study examines the factors that are hindering the growth and development of the Microfinance banking sector in harnessing the potentials of the subsector for economic transformation. The study aims to explore ways on how to maximise the potentials of the microfinance industry by objectively reviewing the policy objectives, operations and impact on the economy. The study identifies government induced factors such as inconsistent government policies, poor policy implementation, lack of infrastructural facilities, hostile business environment, regulatory deficiency, excessive regulatory loads of the Central Bank of Nigeria among others. The study therefore recommends a more progressive regulation, provision of a friendly business environment and removal of the identified hurdles for the growth of microfinance sector. Top Keywords Microfinance, Microcredit, Microfinance Framework, Microfinance Banks, Microfinance Institutions, Micro savings, Microenterprise, small enterprise, medium enterprise. Top |