More banks hustle to meet $1 billion capital base.
November 20th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
With a few more days to go in the current year 2006, more and more banks are not leaving any stones unturned to ensure that they meet the stipulated figure of $1 billion in order to manage Nigeria’s foreign reserve.
In what most would refer to as a new capitalization for these financial institutions, the Central bank of Nigeria, through its Governor, Prof. Soludo, said that for any bank intending to manage part of the nations reserve, it must be capitalized up to the tune of $1 billion (N126 billion).
In return, any financial service provider that meets this requirement will be given the sum of $500 million to manage. Such fund is not to be invested in Nigeria, and will also be utilized under the tutelage of a foreign financial institution.
Such a partnership would help Nigerian banks to be better positioned and equipped to manage more funds in the future. This feat would also engender more customers to the few institutions that have crossed this hurdle as they would indeed have a strong base to carry out their operations.
(No Ratings Yet)
Loading ...