2009-03-13 | BOD/DIR/CIR/GEN/01/023

Reforms of The BDC Segment of The Foreign Exchange Market

In reference to previous circulars, it has been noted that some Bureau de Change (BDC) shareholders are seeking loans from banks for capitalization purposes due to new capitalization requirements. The Banking Supervision Directorate reminds all deposit money banks and other financial institutions of the existing circular prohibiting borrowing for bank capitalization, including BDCs as financial institutions. Funds used to capitalize BDCs found to have been borrowed will be rejected. Therefore, banks are advised not to grant credits for BDC capitalization; violators may face appropriate sanctions.

Nigeria

Central Bank of Nigeria

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