Commercial Banks Capital Base Increased by CBN

Notification has been made by the Central Bank of Nigeria about the elevation of the capital base for commercial banks with international authorisation to N500bn and national banks to N200bn.

On Thursday in Abuja, this announcement was made in a statement signed by Sidi Ali, the Acting Director of Corporate Communications for the apex bank.

A new policy has been introduced by the CBN which necessitates significant raises in the minimum capital base for banks, with adjustments depending on the extent of their operations.

Under the latest policy, commercial banks with international authorisation are now mandated to augment their capital base to N500bn.

Furthermore, national authorisation commercial banks are required to reach an N200bn threshold, while those with regional authorisation must attain an N50bn capital floor.

Focusing on maintaining financial stability, merchant banks are also included in the new directive, facing a minimum capital requirement of N50bn.

Sidi mentioned that non-interest banks holding national and regional authorisation are obliged to raise their capital to N20bn and N10bn respectively.

More details to follow…