CBN sets new rules

The Central Bank of Nigeria (CBN) has set new conditions for banks wishing to raise fresh funds from the capital market through offers for subscription (public offer) or any other format for accessing funds from the capital market.Under the new arrangement, any bank planning to raise fresh capital must submit a comprehensive business plan to the CBN for evaluation and for the purpose of ascertaining what the funds will be used for. Managing Director/Chief Executive Officer of Spring Bank Plc, Dr. Suleiman Ndanusa, at a briefing after the Bankers' Committee meeting in Lagos yesterday, said this decision was taken by the CBN and endorsed by the Bankers’ Committee. The Bankers’ Committee is a group of chief executives of banks, selected financial institutions and top officials of financial sector regulatory institutions, which meets bi-monthly to discuss the state of affairs of the industry. The CBN governor usually chairs the meeting. Ndanusa, who addressed newsmen alongside the Group Managing Director of Afribank Nigeria Plc, Mr. Sebastian Adigwe and his counterpart at First Bank of Nigeria Plc, Mr. Jacobs Ajekigbe, said this decision was taken in order to ensure that the funds being raised or proposed to be raised by the banks are legitimately supported by a business plan.