Sterling joins race of non-interest banks with CBN’s approval

Sterling Bank Plc has notified the Nigeria Exchange Limited (NGX) that it has obtained the Central Bank of Nigeria‘s (CBN) Approval-in-Principle for a standalone license for its non-interest banking business – the proposed Alternative Bank Limited.

The approval is the sequel to the approval-in-principle granted to Sterling Bank for the restructuring as a holding company (HoldCo) and subject to the fulfillment of conditions as stipulated by the CBN.

The Alternative Bank Limited will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs. The overall business will focus on social impact, corporate responsibility, and ensure religious compliance in all its dealings.

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Non-Interest banking, often known as Islamic banking, is founded on defining principles such as interest prohibition in loan and exchange operations. It also forbids the financing of unethical industries such as alcohol, cigarette, and ammunition manufacturing.

With the clearance, Sterling Bank’s new subsidiary has joined the country’s non-interest banks, which include Jaiz Bank, Taj Bank, and Lotus Bank Limited. Alternative Bank Limited, like other Islamic banks, would maintain religious compliance, according to Sterling.