FPR/DIR/PUB/CIR/002/009 dated 28th Marvj 2024, signed by the Director, Financial Policy and Regulation Department of the Nigerian Apex Bank CBN, Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks, it has been emphasised that all banks are required to meet the minimum capital requirement stated below within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.
According to the source:
1. The new minimum capital base for commercial banks with international authorisation is now ₦500 billion
2. The new minimum capital base for commercial banks with national authorisation is now ₦200 billion
3. While the new requirement for those with regional authorisation is ₦50 billion.
4. The new minimum capital for merchant banks would be ₦50 billion
5. While the new requirements for non-interest banks with national and regional authorisations are ₦20 billion and ₦10 billion, respectively.
The Central Bank hinted earlier in the year that the new development will come soon. It is believed that the new positions will help strengthen the players in the sector and cushion them to thrive in the face of the tough economic and financial landscape.
Questions arising:
1. Whoch specific banks fall in the above categories?
2. Will all banks make this deadline?
3. What happens to banks that fail?
Lets talk.
See circular below.
