Jonathan Nwokpor
As a result of the Central Bank of Nigeria’s (CBN) increase in minimum capital requirements for banks, bank mergers are imminent.
The CBN informed all commercial, merchant, and non-interest banks of this via a circular dated March 1 signed by the Financial Policy and Regulation Department director, Haruna Mustafa.
The banker’s bank increased the minimum capital requirement for commercial banks with international authorization from N50 billion in 2005 to N500 billion.
Also, the CBN benchmarked the Bank of Nigeria’s minimum capital requirement for interest banks with the National Spread (N200 billion), Regional (N50 billion), Merchant Banks (N50 billion), National Non-Interest Banks (N20 billion), and Regional Non-Interest Banks.
All banks must fulfill the minimum capital requirement within twenty-four months, starting on April 1, 2024, and concluding on March 31, 2026.
“The prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency and capacity to continue to support the growth of the Nigerian economy.
“Consequently, in furtherance of its statutory responsibility to promote a safe, sound and stable banking system and in line with Section 9 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the Central Bank of Nigeria (CBN) at this moment announces an upward review of the minimum capital requirements for commercial, merchant and non-interest banks in Nigeria”, the circular partly reads.
ZINGTIE recalls that the capital requirement for an international banking license was N50 billion in 2005. N25 billion was the minimum capital requirement for national banks at the time.
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post.
