2015-02-05 | BSD/DIR/GEN/LAB/08/008

Re - Prohibition from Borrowing to Capitalize Banks

The letter, addressed to all banks and discount houses, reiterates the prohibition on borrowing to capitalize banks, reminding financial institutions that this regulation is still in effect. It emphasizes that funds for recapitalization must not be sourced from borrowings within the banking system and that any borrowed funds from outside the system must meet specific criteria to qualify as capital. Breaches of these requirements will result in severe regulatory sanctions.

Nigeria

Central Bank of Nigeria

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