ABSTRACT
The goal of this research work is to carry out a critical analysis of the
performance of microfinance bank in terms of meeting its objective on
financial sustainability and economic empowerment. Umuchinemere
Procredit Microfinance Bank one of the vibrant private owned micro-finance
bank in operation in the eastern part of our country Nigeria, was therefore
selected as case study of this research. The rationale behind the research
work was the paucity situation of credit facilities available to the poor class
of the society and effort of the government to remedy the issue by
formulating policies that promotes participation of private stakeholders in
economic empowerment through financial intermediation targeted to the
poor economic unit. The problem the research is about to solve therefore,
is to analyze the performance of the microfinance bank which is a 100%
private initiative, in the area of financial sustainability and economic
empowerment.
Suggestion from previous authors in the area of study was
review for recommendation and solution on how to run an efficient and
profitable funding unit by applying some of the principles as follows;
corporate governance, financial sustainability, welfare impact, outreach to
the poor e.t.c. considering the nature of study, the research design used
was a case study of Umuchinere Procredit Microfinance Bank (UPMFB).
Data was collected from a secondary source of published financial
statement for a period that covered the trend of 10 years. The data was
presented in tabular and graphical form. The tool for analysis was CAMEL
rating and financial ratio. After critical analysis, the findings made was that
the bank has strength in capital and liquidity base but with very poor
earnings, poor asset quality, low or no capital growth and vulnerability of
the bank asset to unsecured loan. The researcher came up with the
recommendations that the government should provide special deposit
insurance scheme to cushion the high risk vulnerability associated with the
peculiar nature of microfinance bank. The microfinance bank should
embark on risk management policy review, periodic staff training to
enhance professionalism and efficiency, reaching out to untapped viable
sources of the economy with the excess resources (deposits) available to it.
