Regulatory Alerts2010-09-08 | BSD/DIR/GEN/UBM/03/025Circular on The Review of The Universal Banking Model
The Central Bank of Nigeria (CBN) has been implementing strategic reforms aimed at enhancing the quality of banks, ensuring financial system stability, and fostering a healthy financial sector. As part of this agenda, the CBN conducted a review of the universal banking model and plans to fully comply with the provisions in the Banks and Other Financial Institutions Act (BOFIA) regarding the conduct of banking business. Key changes include: 1. Discontinuing the issuance of universal banking licenses. 2. Licensing banks to perform specific types of business, such as commercial banking, merchant banking, and specialized banking like microfinance and mortgage banking. 3. Prohibiting banks from undertaking non-banking activities. 4. Requiring existing universal banks to submit their plans for compliance with the new banking regime within 90 days after October 4, 2010.