CBN releases guidelines for operationg holding company

Central Bank of Nigeria (CBN) has released  guidelines for licencing and operating financial holding company in the country.
The CBN guideline said that the process of licencing holding company  shall be in two phases: Approval-in-Principle (AIP) and final licence.
The guideline stated that the  application for AIP shall accompany with a  non-refundable  fee of N2,000,000 or such other amount that the CBN may specify from time to time payable to the Central Bank of Nigeria by bank draft or by electronic transfer. It said that the promoter  would also show  an  evidence of meeting the prescribed minimum paid-up capital, justification for applying for the financial holding company and the ownership structure  in a tabular form indicating the name of proposed investor(s), profession/business and their percentage shareholdings;

The guideline further said that  the promoters are  expected to submit another application after six months in  operation for the  CBN to issue  final licence. Such application  according to the apex bank shall be accompanied with non-refundable licensing fee of N10,000,000.00 ,or such other amount that the CBN may specify from time to time, evidence of payment of capital contribution by each shareholder and certified true copy (CTC) of Certificate of Incorporation of the financial holding company.

The apex bank had in 2010 repealed the universal banking and introduced a new banking model  as part of the strategic initiatives to reposition the Nigerian banking system on the path of sustainable viability.

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