New Bank Licencing Regime Takes off Jan 1
- By Simeon Ogoegbulem
- Published September 13th, 2010
- News
- Unrated
THE new banking licensing regime, being put in place by the Central Bank of Nigeria (CBN), will take off from January 2011, BusinessWorld Intelligence can now disclose. In order to ensure its smooth transition, the apex bank has given the banks up to December 31, 2010 to submit their work plan for their transition to any banking model of their choice.
BusinessWorld Intelligence can disclose that CBN will effective from this date, cease to issue universal banking licence to individuals or group of individuals wishing to go into banking business in the country. Currently, most banks operating in the country are in the mould of financial supermarkets.
Under the proposed regime, banks will be issued licences to operate either as regional, national or international commercial banks. Bank promoters may also be issued banking licence to operate strictly as merchant banks or as a specialized bank.
However, under the proposed regime, special banks/institutions such as the Primary Mortgage Institutions, Microfinance Banks, Non-Interest Banks, Development Banks and Discount Houses shall continue to perform their specialized roles within the framework of existing guidelines.
The apex bank added that the responsibility for ensuring compliance with the guidelines resides with their boards and management while the CBN reserves the right to stipulate additional requirements prior to granting any approval or authorization.
CBN had last March, as part of the on-going reform agenda, circulated a draft exposure report detailing its intent to modify the current banking model/arrangement and defining a new banking licence regime. Comments from key industry operators were received, considered and served as input towards the finalization of the exposure draft document.
BusinessWorld Intelligence can disclose that CBN will effective from this date, cease to issue universal banking licence to individuals or group of individuals wishing to go into banking business in the country. Currently, most banks operating in the country are in the mould of financial supermarkets.
Under the proposed regime, banks will be issued licences to operate either as regional, national or international commercial banks. Bank promoters may also be issued banking licence to operate strictly as merchant banks or as a specialized bank.
However, under the proposed regime, special banks/institutions such as the Primary Mortgage Institutions, Microfinance Banks, Non-Interest Banks, Development Banks and Discount Houses shall continue to perform their specialized roles within the framework of existing guidelines.
The apex bank added that the responsibility for ensuring compliance with the guidelines resides with their boards and management while the CBN reserves the right to stipulate additional requirements prior to granting any approval or authorization.
CBN had last March, as part of the on-going reform agenda, circulated a draft exposure report detailing its intent to modify the current banking model/arrangement and defining a new banking licence regime. Comments from key industry operators were received, considered and served as input towards the finalization of the exposure draft document.
