…Proposes strict limits on shared directors, staff, technology platforms and intra-group funding
Nume Ekeghe
The Central Bank of Nigeria (CBN) has unveiled sweeping proposals aimed at isolating risks across banks, fintechs and other closely linked financial institutions.
The proposals, contained in the apex bank’s newly released ‘Exposure Draft Guidelines on Ring-Fencing Operations of Closely Linked Entities in the Nigerian Financial System,’ seek to establish clear operational, governance and financial boundaries among affiliated institutions to prevent distress in one entity from spreading across an entire financial group.
The draft guidelines come amid the growing convergence of banking, payments, lending, wealth management and other financial services businesses, many of which increasingly operate under common ownership structures.
