NDB preparing to become commercial bank next year


THE National Development Bank will become a fully-fledged commercial bank next year, National Planning and Monitoring Minister Richard Maru, says.
Maru told Parliament that the Government planned to see its own bank starting next year.
“The people’s micro bank will become a commercial bank to create competition and reduce bank fees starting next year,” he said.
“Initially the idea of setting up a micro bank was to eventually change the bank into a fully-fledged commercial one, not only create competition and reduce bank fees but also to provide products and services that are people-friendly.”
Maru said it was Government’s desire that the bank must be owned by the people.
“The NDB in the last three years has become a profitable bank, making it eligible to meet the criteria of the Central Bank to obtain a commercial licence,” he said.
He said the government had allocated some funding to the bank in the 2018 budget so that it could apply for a commercial bank licence next year.
“I have informed the NDB that this would be the last time that the Government would fund them,” Maru said.
It’s time we own our own bank that is more people-focused and friendly.”