Regulatory Alerts2010-08-03 | BSD/DIR/SBG/2010/03Review of Guidelines for Specialised Institutions
The Central Bank of Nigeria (CBN) is reviewing the guidelines for licensing specialized institutions, including non-interest banks, primary mortgage institutions, and microfinance banks, with increased minimum paid-up capital requirements. Transitional arrangements will be provided for existing institutions to recapitalize, and draft frameworks for non-interest banks and primary mortgage institutions are being finalized based on industry feedback. The institutions mentioned above will continue to operate within existing guidelines until the CBN issues revised regulations.
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.