Policy may create N370 billion capital shortfall, compel UBA, Zenith to restructure as Tier-1 banks risk fresh capital beef-up
Declares ring-fencing plan threatens cross-sell model, raises compliance burden for banks, fintechs
James Emejo in Abuja
Leading investment research firm, Zrosk Investment Management, has cautioned that the Central Bank of Nigeria (CBN)’s proposed overhaul of the Financial Holding Company (HoldCo) framework could trigger fresh capital raising by major banking groups, force structural reorganisation by some lenders and significantly alter the economics of financial services industry.
In its assessment of the apex bank’s recently released exposure drafts on revised HoldCo regulations and new ring-fencing guidelines, the firm described the proposed 20 per cent capital buffer requirement and mandatory HoldCo formation for certain institutions as the most consequential regulatory changes to the sector in over a decade.
