The Central bank of Nigeria (CBN) on Friday extended the operations of all banks with regional authorisation to three geo-political zones from two geo-political zones of the federation.
The move according to the regulator is in furtherance of its objective to promote financial inclusion in the country.
In a circular dated June 26, 2020 and signed by Kevin Amugo, director, financial policy and regulation department, the compliance timeline to establish operational footprint at the advised zone shall not exceed six months from the issuance of the regulatory advice to each regional bank by the CBN.
The circular reads: “effective the date of this circular, all banks with regional authorisation 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”.
Commercial banking license with regional authorisation include Globus Bank Limited, Suntrust Bank Nigeria Limited and Providus Bank Pl. Non-interestbanking lisence with regional authorisation is Taj bBank Limited.