CBN Bars Banks, Monetary Establishments In search of Improve From Growth
The Central Financial institution of Nigeria (CBN) has barred banks and different monetary establishments in search of a conversion licence from increasing or decreasing their present banking community in its new draft pointers.
The CBN discloses this in a round tagged ‘FPR/DIR/PUB/CIR/001/072’ to banks and different monetary establishments, which was titled ‘Regulatory pointers for change of operational licence for banks and different monetary establishments in Nigeria’, and dated 28 March 2023.
The draft was signed by the Director, Monetary Coverage and Regulation Division, Chibuzor Efobi.
The round said, “Underneath these pointers, the next prohibitions/restrictions shall apply to eligible banks and OFIs making use of for conversion or re-categorisation. The financial institution or OFI shall not, pending when the appliance is set broaden or cut back its present banking community;
“Roll-out new services; perform any new strategic banking exercise however the settlement of rights and obligations shall proceed till extinguished in accordance with present phrases and situations;
“Take any enterprise determination after the conversion course of was commenced, besides according to the financial institution’s conversion technique submitted to the CBN; Interact in any banking exercise particular to the proposed new licence; another requirement which may be prescribed every so often by the CBN.”
The CBN said that as a result of growing requests from monetary establishments to both improve or convert to different licence regimes, the draft pointers aimed to supply readability to eligible monetary establishments on regulatory necessities.
