There are plenty of consolidated banks in the country of Nigeria; these include famous financial institutions, such as Diamond Bank, First City Monument Bank, and United Bank of Africa. Other popular banks that fall under this category include Skye Bank, Spring Bank, Stanbic Bank, and the Standard Chartered Bank.
In the summer of 2004, the director of the Central Bank (Nigeria) released news about the new consolidation process for Nigerian financial institutions. He announced that each bank that wished to be included in consolidation would need to have a minimum capital fund of 181 million dollars. Many mergers between smaller banks occurred during this period, so there would be sufficient capital to participate in the consolidation process. Banks had until winter of 2005 to comply with the new regulations.
Way back in the late 19th century, the first bank of Nigeria (African Banking Corporation) was incorporated. There were no set rules for banking laws until the 1950's, when foreign types of banks began to come to Nigeria and set up shop. Examples of these foreign banks include:
• Bank Of British West Africa
• Barclays
New Nigerian Banking Laws Were Established in 2008
Foreign and indigenous banks did business side by side until 2008, when Nigerian authorities established stricter guidelines for foreign banks. These new rules were designed to offer protection to local banks, which could not easily compete with their foreign competitors. Today, to remain in business in the Nigerian banking industry, foreign financial institutions must already have five years of experience in the country, running banks for citizens.
These foreign-based banks must also have different branches in various sections of Nigeria, including Abuja. In addition, each foreign bank must hold a 40 percent share of a local Nigerian bank. With these new measures, indigenous banks, such as Diamond Bank, now have more power and sway in financial communities. However, many people resisted the changes brought forth by new consolidation and foreign banking edicts.
In the summer of 2004, the director of the Central Bank (Nigeria) released news about the new consolidation process for Nigerian financial institutions. He announced that each bank that wished to be included in consolidation would need to have a minimum capital fund of 181 million dollars. Many mergers between smaller banks occurred during this period, so there would be sufficient capital to participate in the consolidation process. Banks had until winter of 2005 to comply with the new regulations.
Way back in the late 19th century, the first bank of Nigeria (African Banking Corporation) was incorporated. There were no set rules for banking laws until the 1950's, when foreign types of banks began to come to Nigeria and set up shop. Examples of these foreign banks include:
• Bank Of British West Africa
• Barclays
New Nigerian Banking Laws Were Established in 2008
Foreign and indigenous banks did business side by side until 2008, when Nigerian authorities established stricter guidelines for foreign banks. These new rules were designed to offer protection to local banks, which could not easily compete with their foreign competitors. Today, to remain in business in the Nigerian banking industry, foreign financial institutions must already have five years of experience in the country, running banks for citizens.
These foreign-based banks must also have different branches in various sections of Nigeria, including Abuja. In addition, each foreign bank must hold a 40 percent share of a local Nigerian bank. With these new measures, indigenous banks, such as Diamond Bank, now have more power and sway in financial communities. However, many people resisted the changes brought forth by new consolidation and foreign banking edicts.
