The Central Bank of Nigeria (CBN) has expanded the scope of regional banking license from one geopolitical region to two.
The CBN conveyed its decision in a circular dated June 26, 2020 addressed to all regional banks in Nigeria. The circular was signed by Mr. Kevin N. Amugo of the Financial Policy and Regulation Department.
“Effective the date of this circular, all banks with regional authorization shall be required to operate from one additional geo-political zone as may be prescribed for each institution by the CBN, without prejudice to the existing requirement of minimum of two geo-political zones of the federation. The essence is to promote spread and balance of regional banks across the country,” the circular said.
“The compliance timeline to establish footprint at the advised zone shall not exceed six months from the issuance of the regulatory advice to each regional bank by the CBN,” it added.
