Abuja - The Central Bank of Nigeria (CBN) has stipulated a minimum capital base of N100 billion and N10 billion for for establishment of development banks popularly known as Development Finance Banks, Vanguard reports.
With this development a major adjustment has been effected in the structure of banking industry in Nigeria creating a big ticket up-tier subsector in the industry.
Also read: CBN rules out plans to introduce capital control
The minimum capital base for them is N25 billion introduced by Chukwuma Soludo’s CBN in 2004, though the merchant banking segment had been eliminated with a universal banking regime then but re-introduced by Lamido Sanusi’s CBN in 2010.
CBN noted in its new policy guidelines that ‘’due to limited access to long-term and low-interest funds, in addition to other factors, the DFIs have recorded limited success.
Read more at Vanguard
- News 24