A framework to help the Central Bank of Nigeria (CBN) in its efforts to strengthen the nation’s banking industry has been made available by the Securities and Exchange Commission (SEC).
The framework, posted on the SEC website on Friday, attempts to guarantee a seamless, open, and effective capital-raising procedure for banks and holding companies participating in the CBN’s bank recapitalization initiative.
During the 2024–2026 recapitalisation phase, the framework will offer banks principles and processes for raising capital through private placements, rights issuing, and other permissible ways.
To boost productivity, the CBN ordered on March 29, 2024, that the capital bases of Deposit Money Banks (DMBs) be increased. The new minimum capital requirements stipulated that international banks had to raise their capital bases to N500 billion, national banks to N200 billion, and regional banks to N50 billion.
The SEC created the framework to guarantee that the capital-raising process is carried out effectively, transparently, and with the protection of all stakeholders in mind in response to the CBN’s order.
The SEC said,
Since the capital market is likely to be used by the banks to generate the necessary money and/or participate in various business combinations, the commission observed that the market has a major role to play in supporting the recapitalization program.
It stated,
According to SEC, Applications and supporting documentation should be submitted electronically by email to [email protected]. It added that documents that are provided will be examined, and applicants will be notified electronically if any problems are found.
The commissiom also noted that for banks looking to acquire capital within the allotted time, completing the application process on time is essential.
In order to guarantee banks submit accurate and complete information from the start, the framework also specifies penalties for incomplete applications, with a price of N1,000,000 for returned applications and a N100,000 re-filing fee.
The SEC invites banks and interested parties to contact [email protected], the designated email address, with any questions or clarifications.
Speaking on the new capital requirement, Charles Abuede, a financial analyst told TimesNow.com.ng,
TimesNow.com.ng reported that the Nigerian Securities and Exchange Commission (SEC) has amended the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.
The SEC sent a formal notice to the public outlining its plans to alter these important rules.
The purpose of the amendment process is to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.
Source: TimesNow.com.ng
