CBN approves wholesale banking licence for DBN

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Thursday, March 30, 2017 09.40 AM / by Emma Ujah, Punch

THE Central Bank of Nigeria, CBN, has approved a wholesale development finance institution licence with national authorization for the Development Bank of Nigeria, DBN Plc, the Minister of Finance, Mrs. Kemi Adeosun, has confirmed.

In a letter to the Managing Director/Chief Executive Officer of DBN dated March 28, 2017, signed by the Deputy Governor of the CBN in charge of Financial System Stability, the approval was, however, made subject to meeting the minimum capital requirement of N100 billion, reconstitution of the Board of the bank and reviewing its organizational structure.

The DBN, was conceived in 2014 but its take-off had been fraught with delays. While reviving the process of the bank’s take off, Adeosun said the DBN will have access to US$1.3bn (N396.5 billion) which has been jointly provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency). The bank is also finalising agreements with the European Investment Bank (EIB).

Medium to long-term loans
She also stated that the DBN, will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).

A statement signed by the director of information in the Finance Ministry, Salisu Na’Inna Dambatta said “as a wholesale bank, the DBN will lend wholesale to microfinance banks which will on-lend medium to long-term loans to MSMEs. The MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of Nigeria but have access to only about five percent of lending from Deposit Money Banks (DMBs).

“The Federal Government expects that the influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements, and acquire equipment or supplies.”

Related News
The Scripless Securities Settlement System Business Rules and Guidelines
Federal Reserve Issues FOMC Statement
SEC Proposes New Rule on Fixed Income and Equity Primary Issuance
IOSCO Launches Its First Regional Capacity Building Hub In Malaysia
Meeting with CMOs on the SEC Risk-Based Supervision (RBS) Framework and Updated Reporting Template
Immediate Adoption of Examiners’ Recommended Provision and Audit Adjustments by the OFIs
SEC Releases Communiqué Issued At The 2017 Budget Seminar
U.S. SEC Approves Rules To Ease Investor Access To Exhibits In Company Filings
Modernizing & Updating Disclosure Rules - Use of Hyperlinks and HTML
Remembering The Forgotten Investor - Remarks At The "SEC Speaks" Conference 2017
IOSCO report shows progress made in implementation of Benchmark Principles
The Rate of Naira Counterfeiting Is Less Than One Per Cent - CBN
Application of International Standard on Auditing (ISA) 701 in the Banking Sector
CBN Issues Circular on the Amendments of S4 Business Rules and Guidelines
Exposure of Proposed New Rule and Sundry Amendments to the Rules and Regulations of SEC Nigeria
SEC Reorganizes for Efficiency
Speech Given By Mark Carney, Governor Of The Bank Of England, At The London School Of Economics
Benefits of Credit Bureau Systems
Promoting Higher Quality And Lower Cost In Financial Regulatory Reporting
SEC Publishes Rules on Capital Market Holding Companies, Others for Exposure

Related News