ETB Joins WEMA As Regional Banks

In line with its move to sanitize and ensure the stability of the financial system, the Central Bank of Nigeria has granted international licences to nine banks. Six banks were granted licence to operate nationally while two banks dropped to the regional banking level. The banks granted international status are : Access Bank, Guaranty Trust Bank, Diamond Bank, and Skye Bank. Others are Zenith Bank, Fidelity Bank, United Bank for Africa, First City Monument Bank and First Bank. The financial regulating body also stated that the eight Banks that recently received intervention funds from the CBN have been given up till 30 September as the final deadline to recapitalize or explore the options of Merger and acquisition, failure which will leave the CBN to freely liquidate the Banks through the Nigerian Deposit Insurance Corporation, NDIC.

According to the Deputy Governor, CBN in charge of Financial System Stability, Kingsley Moghalu, the six Banks to operate with national authorization are: CitiBank Nigeria Plc, EcoBank, Standard Chartered Bank, Sterling Bank, Unity Bank and Stanbic Bank. The two banks that were granted licence to operate at the regional level are Equitorial Trust Bank and WEMA Bank.

Moghalu insisted that the new order bars all the banks from involving in real estate and other activities not primarily related to the banking assignment.

He however maintained that four out of the 17 listed banks have been given the approval to run Holding companies with the capacity to own other banks as subsidiaries. These companies are: First Bank, UBA, FCMB and Stanbic Bank.

By Desmond Utomwen/abuja