Alert: Central Bank of Nigeria Circular BSD/DIR/RBG/2010/08

Title: Regulation on the Scope of Banking Activities & Ancillary Matters, No. 3, 2010

Summary: Nigeria's Central Bank has issued a circular outlining the scope of banking activities and related matters for financial institutions. From the effective date of November 15, 2010, banks will only be permitted to operate as commercial banks, merchant banks, or specialized banks such as non-interest banks, microfinance banks, development banks, and mortgage banks. No other types of banks will be licensed. Banks are also prohibited from maintaining related enterprises, investing in real estate or political activities, and granting loans for the acquisition of related entities. Banks must submit a compliance plan for approval and divest from any non-permitted activities by the effective date. Non-compliance may result in license revocation.

Posted on: Tuesday, November 09, 2010

Download: BSD/DIR/RBG/2010/08