March, 17, 2010

The Central Bank of Nigeria (CBN) yesterday said it would soon stop the issuance of universal banking licenses to operators in the nation’s banking industry.According to the director, banking operations, Samuel Oni, the new banking system structure is in line with the ongoing reforms in the banking sector aimed at supporting the stability recorded so far.Under the new arrangement, operators would be expected to apply for and get separate licenses for each model of banking operations, including commercial banking, micro-finance banking, mortgage banking and investment banking.

Mr. Oni, who disclosed this at the end of the 298th meeting of the Bankers’ Committee held yesterday, added that “This is part of the ongoing reforms to redraw the banking structure to ensure that commercial banks face their traditional business and ensure that depositors’ funds are not endangered. The new arrangement would protect commercial bank activities from pressures from non-commercial banking operations, to allow them concentrate in the provision of their traditional banking activities.”

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