Zenith, UBA, 4 Others Beat Benchmark As CBN Raises Capitalisation To N500bn

Days after urging Nigerian banks to expedite action on the recapitalisation of their capital base in order to strengthen the financial system, the Central Bank of Nigeria (CBN) on Thursday, unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at N500 billion.
This is from the current minimum capital base of N50 billion for an international banking licence while the national bank capital requirement is at N25 billion.

The regional banking licence was put at N10 billion, and the merchant bank capital requirement at N15 billion.

However, LEADERSHIP reports that Zenith Bank UBA, Access Bank and 4 other tier-1 banks have already capitalised far beyond this new threshold of N500 billion.
The central bank in a statement said the new minimum capital base for commercial banks with national authorisation is now N200 billion, while the new requirement for those with regional authorisation is N50 billion. Acting director, corporate communications department, of the CBN, Mrs Hakama Ali in the statement also disclosed that the new minimum capital for merchant banks would be N50 billion, while the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion, respectively. She quoted a circular signed by the director, financial policy and regulation department, Mr. Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks as emphasising that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026

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