This circular, which was signed by the director of CBN’s financial policy and regulation department, Chibuzo Efobi, was an exposure draft of the guidelines for change of operating licence for banks and other financial institutions .The CBN said the draft guidelines are aimed at providing clarity on the requirements of change of the various licence types for banks and OFIs.
To this end, the apex bank prohibited any eligible bank or OFI applying for conversion or re-categorisation from expanding or reducing its current banking network, pending when the application is determined. On the eligibility criteria for change of operating licence, the apex bank said the financial institution must be under the supervisory purview of the CBN; has no adverse supervisory report to its application, and satisfies any other condition which it may stipulate from time to time.
All banks or OFIs are permitted to change their licence type but the CBN reserves the right to decline a request, it noted, adding that the licensing process would be in two phases – approval-in-principle and final approval.