The Central Bank of Nigeria (CBN), pursuant to its regulatory mandate of promotion of financial inclusion in the country has advised licensed regional banks in the country to expand to one additional region.
According to a CBN circular available to Nigerian Banker, titled ‘Expansion of the scope of Regional Banks in Nigeria’. The CBN said the additional requirements will affect Commercial and Non-interest banks licensed as regional banks in the country.
“…Effective the date of this Circular, all banks with regional authorization shall be required to operate from one additional geo-political zone as may be prescribed for each institution by the CBN, without prejudice to the existing requirement of a minimum of two (2) geopolitical zones of the federation“.
CBN further said that the essence of the new requirement is to spread and balance of regional banks in the country. “The essence is to promote the spread and balance of regional banks across the country.
“The Compliance timeline to establish operational footprint at the advised zone shall not exceed six (6) months from the issuance of the regulatory advice to each regional bank by the CBN”. The circular said.