Sterling Bank gets CBN’s nod to restructure to holding company, start non-interest bank

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It got an approval-in-principle to start a non-interest banking unit to be known as Alternative Bank Limited.

and its subsidiaries will own controlling stakes in them, while overseeing management resolutions without direct involvement in their day-to-day business.

The model offers protection against risk of exposure in that the parent company is not liable for the loss of any of the subsidiaries in the event of bankruptcy. “The Alternative Bank Limited will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs,” the note said.

“The overall business will focus on social impact, corporate responsibility, and ensure religious compliance in all its dealings.”, Nigeria’s biggest lender by market value, as the second bank to restructure to a holdco this year. FBN Holdings, the FCMB Group and Stanbic IBTC Holdings have already joined the fold while Access Bank is on course to adopting that corporate identity.

 

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