- Sterling Bank management is one step away from becoming a holding company after it received clearance from CBN
- As a holding company, the bank will open a new subsidiary that will operate as a non-interest bank
- In the last few months, First Bank of Nigeria, Guaranty Trust Bank have all restructured to a holding company
The Central Bank of Nigeria (CBN) has asked Sterling Bank Plc to go ahead with its plan to restructure and operate a stand-alone license for its non-interest banking activity.
The approval is in principle and subject to regulatory approval.
Sterling bank subsidiary will be called Alternative Bank Limited and will operate under the confine of Islamic religious guidelines.
Non-Interest banking, often known as Islamic banking, is based on defining principles such as the prohibition of interest in loan and exchange transactions.
PiggyVest, Flutterwave, Paystack, other payment systems in Nigeria have attracted N290trn in 5 Years, CBN says
It also prohibits the sponsorship of unethical businesses such as alcohol, tobacco, ammunition production, among others.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
With the approval, Sterling Bank’s new subsidiary has joined Jaiz Bank, Taj Bank and Lotus Bank Ltd which are currently the non-interest banks in the country.
According to sterling, like other Islamic Banks, Alternative Bank Ltd will ensure religious compliance.
The bank announced on the Nigerian Exoffenceschange Ltd that the new subsidiary was in conformity with the bank's in-principle permission for restructuring as a holding company (HoldCo).
The statement reads:
"The Central Bank of Nigeria (CBN) has granted Sterling Bank Plc Approval-in-Principle for a stand-alone license for its non-interest banking activity – the projected Alternative Bank Limited."
“The approval is sequel to the approval-in-principle granted to the Bank for the restructuring as a holding company (HoldCo) and subject to the fulfillment of conditions as stipulated by the CBN.”
Central Bank of Nigeria to arrest, lock up farmers on its Anchor Borrowers Programme for failure to repay loan
Sterling bank also revealed that the new subsidiary, Alternative Bank Ltd will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs.
Banks publish names of 1,042 Nigerians using fake visas, other tricks
In another banking news Legit.ng had earlier reported how ten Nigerian banks released the identities of customers who have committed forex offenses in accordance with CBN instructions.
In a circular issued recently, the CBN outlined the fraudulent practices to include the use of fake visas and cancellation of air tickets for the purchase of forex.
CBN had instructed banks to publish names of individuals who engage in such and ensure they are barred from accessing forex in the future.