Regulatory Alerts2010-02-08 | MCFTEP-2010-11Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for 2010/2011
Here is a concise summary of the provided banking information. The Central Bank of Nigeria has set prudential requirements for commercial banks, microfinance banks (MFBs), primary mortgage institutions (PMIs), finance companies (FCs), and discount houses (DHs) for capital adequacy, shareholders' funds, individual and group lending limits, mortgage assets to total assets, and other factors. For commercial banks: - Prescribed minimum paid-up capital is N20 billion - Capital adequacy ratio should be 10% - Individual single obligor lending limit is 1% of shareholders' funds - Mortgage assets to total assets should not exceed 30% - Group mortgage exposure should not exceed 5% of shareholders' funds. For MFBs: - Prescribed minimum paid-up capital is N20 million - Capital adequacy ratio and liquidity ratios apply as in commercial banks. For PMIs, FCs, and DHs: - No prescribed minimum paid-up capital is mentioned; however, prudential requirements for capital adequacy, shareholders' funds, and other factors are applied according to their category. For example, FCs should have a capital adequacy ratio of 12.5%, while DHs must maintain a liquidity ratio of 20%. These guidelines apply on daily, weekly, monthly, quarterly, and yearly basis to ensure the stability and efficiency of Nigeria's financial institutions.