‘First Bank In Compliance with CBN Recapitalization Policy for Offshore Units’ – CEO
Chief executive Officer of First Bank, Olabisi Onasanya, has disclosed that Africa’s oldest financial institution is in compliance with the apex body’s latest regulation on Nigerian bank foreign subsidiaries.
The CBN last week prohibited Nigerian banks from using funds from their Nigeria parent banks to recapitalize their foreign subsidiaries.
Central Banks’ in several African countries are requiring banks to recapitalize and some countries are placing tougher conditions on international banks which include Nigerian banks operating in the foreign countries.
In Zambia, for instance, the minimum capital requirement for foreign banks has been raised from $2m to $100m and to $20m for local banks, with a December 31, 2012 deadline for full compliance.
It is expected that some Nigerian banks will be unable to comply with the requirements. UBA for instance has a presence in more than 12 African countries.
The CEO of First Bank said in a conference call to d that the bank’s foreign subsidiaries are “adequately capitalized”.
He added, “In the unlikely event that we will be affected, we are looking at various options, including reducing dividend payout [in those units].”