Non-interest banking transaction-based system good for MSMEs – Summit Bank’s MD

Dr. Sirajo Salisu, Managing Director and Chief Executive Officer of Summit Bank Limited, a newly licensed non-interest bank, stated that transaction-based non-interest banking is beneficial for Micro, Small, and Medium Enterprises (MSMEs). He explained that Summit Bank is the fifth non-interest bank in Nigeria, following JAIZ, TAJ, Lotus, and Alternative. Salisu described non-interest banking as a system that finances transactions and shares profits, rather than direct lending. He noted that this model raises questions about profit sharing but emphasized its advantages for small businesses.

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