Banks step up preparation for categorization, apply for new licenses

Banks are stepping up preparation for the move from universal banking to categorization banking with some applying for new licenses.

It would be recalled that the Central Bank of Nigeria suspended universal banking model replacing it with niche banking otherwise known as categorization. Under the new model there are three categories of banks namely regional, national and interna-tional banks with capital base of N15 billion, N25 billion and N100 billion respectively.

The apex bank also directed banks to indicate the market segment of their choice
between October and the end of the year under the new banking model.

Investigations reveal that Skye Bank Plc and Sterling Bank Plc have concluded plans to apply for  international and national banking licenses respectively.

Intercontinental Bank Plc has also restated its commitment to retain its  international banking status in whichever arrangement the institution eventually  finds itself after the ongoing recapitalisation exercise.

Syke Bank said in a statement yesterday that its preference for  international banking licence was informed by its desire to take advantage of the   business opportunities in the West Coast and other parts of the world where business opportunities abound.  The bank already has subsidiaries in Sierra

Leone,the Gambia and Guinea.
The statement said Skye Bank currently has almost N100 billion capital  and
would soon embark on phased capital raising exercises to bolster its
share capital.

The bank said it was strong enough to play in the international market.

Syke Bank had last August sought to raise N15 billion by way of  special placement with the exercise achieving over 97 per cent subscription as part of  the strategy to bolster its strength and position for leadership in the industry.