Business

BREAKING: CBN Sets Minimum Capital Base For Banks At N500bn

CBN is pegging the minimum capital base for commercial banks with international authorization at 500 billion naira ($353.32 million).

Published

4 months ago

March 29, 2024

VerseNews

Central Bank of Nigeria (CBN)

CBN is pegging the minimum capital base for commercial banks with international authorization at 500 billion naira ($353.32 million).

The Central Bank of Nigeria has announced new minimum capital requirements for banks in a bid to enhance banks’ resilience and strengthen the country’s financial system.

VerseNews reports that this was confirmed by the Apex bank spokesperson, Hakama Sidi Ali, confirmed the development in Abuja on Thursday.

According to Ali, CBN is pegging the minimum capital base for commercial banks with international authorization at 500 billion naira ($353.32 million).

The central bank said it is also setting a new minimum capital base for commercial banks with national authorization at 200 billion naira, while the new requirement for those with regional authorization will be 50 billion naira.

It further stated that the new requirements for non-interest banks with national and regional authorisations are ₦20 billion and ₦10 billion, respectively.

DON’T MISS: BREAKING: CBN Begins Forex Sales To BDCs At N1,251/$1

This Online News Platform gathered that in a circular signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasised 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.

To help banks meet the new capital requirements, the central bank said it is urging them to consider options including fresh equity capital injections, mergers and acquisitions, and upgrading or downgrading of license authorization.