Bank mergers are imminent as the Central Bank of Nigeria, CBN, has raised minimum capital requirements for banks.
CBN disclosed this in a
circular signed by the Financial Policy and Regulation Department Director,
Haruna Mustafa, and issued to all commercial, merchant and non-interest banks.
The banker’s bank pegged the
minimum capital base for commercial banks with international authorisation at
N500 billion from N50 billion in 2005.
Also, CBN benchmarked the
minimum capital requirement for banks with National Spread (N200 billion),
Regional (N50 billion), Merchant Banks (N50 billion), National Non-Interest
Banks (N20 billion) and Regional Non-interest (N10 billion).
All banks are required to meet
the minimum capital requirement within 24 months commencing from April 1, 2024,
and terminating 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.
In 2005, the capital
requirement for an international banking license stood at N50 billion. Then,
the minimum capital requirement for national banks was N25 billion.
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