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The CBN has barred closely linked financial institutions from lending to or guaranteeing each other without prior approval from the regulatorThe new draft guidelines require related entities to operate independently, maintain separate governance structures, and keep adequate capital and liquidityThe CBN warned that institutions that violate the rules could face penalties, management changes, or licence revocation
Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.
The Central Bank of Nigeria (CBN) has introduced fresh measures aimed at strengthening oversight within the financial sector, prohibiting closely related financial institutions from granting loans to one another or guaranteeing each other’s obligations without prior approval from the regulator.
The directive was contained in the apex bank’s Exposure Draft on the ring-fencing of operations among closely linked entities within Nigeria’s financial system.
CBN Bans Banks, Fintechs, Others From Giving Loans to Related Companies Without ApprovalSource: UGC
CBN tightens rules on related-party
