Regulatory Alerts2010-09-08 | BSD/DIR/SBG/2010/06CBN Scope, Conditions & Minimum Standards for Specialised Institutions Regulations No. 03, 2010
The Central Bank of Nigeria (CBN) is reviewing its guidelines for licensing specialized institutions, including non-interest banks, primary mortgage institutions, microfinance banks, development banks, and discount houses. As part of the reforms, the minimum paid-up capital requirements for these institutions are being revised. For instance, regional non-interest banks will require a minimum paid-up capital of N5 billion, while national non-interest banks need at least N10 billion. Transitional guidelines for existing specialised institutions affected by increased minimum capital requirements are also being developed. CBN is finalizing the draft framework for regulating and supervising non-interest banks based on stakeholder feedback, and it is in the process of reviewing and finalizing the primary mortgage institution framework. All specialized institutions will continue to operate within existing guidelines until new ones are issued.
Cbn Scope, Conditions & Minimum Standards For Specialized Institutions Regulations No. 03, 2010
In furtherance of the strategic imperatives being implemented by the CBN to reform the Nigerian financial system, the CBN is conducting a comprehensive review of the guidelines for the licensing of Specialised Institutions which include Non-interest banks, Primary Mortgage Institutions, Microfinance banks, Development banks and Discount Houses.
Accordingly, the minimum paid-up capital requirement for the following Specialised Institutions shall, by applicable regulations and guidelines
| Institution | Minimum Paid-up Capital |
|---|---|
| Non-interest bank (regional) | N5 billion |
| Non-interest bank (national) | N10 billion |
| Primary Mortgage Institution | N5 billion |
soon to be issued by the CBN, be revised as follows: As part of transitional arrangements, the CBN will provide guidelines for the recapitalisation of existing specialised institutions that will be affected by an increase in minimum capital requirements.
The draft framework for the regulation and supervision of Non-interest banks which was issued through our circular BSD/DIR/GEN/NIB/01/008 dated March 4, 2009 is being finalised based on feedback received from industry operators and key stakeholders. In addition, the framework for primary mortgage institutions is being reviewed and finalised in terms of operations and funding for the mortgage sector. Primary Mortgage Institutions, Microfinance Banks, Development Banks and Discount Houses shall continue to perform their specialised roles within the framework of existing guidelines pending the issuance of revised guidelines by the CBN.