UBA, Zenith, Access Set to Welcome New Rival as Another Bank Seeks Approval for Commercial Operation
- Abbey Mortgage Bank Plc is asking shareholders for permission to transition from a mortgage bank to a regional commercial bank
- A meeting of the bank's shareholders is anticipated to address both ordinary and special motions that will facilitate the conversion
- The company's plan to become a regional commercial bank and change its legal and brand identity would be approved by shareholders
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Abbey Mortgage Bank Plc is requesting shareholder approval to move forward with its aim to become a regional commercial bank instead of a mortgage bank.
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The bank's shareholders are expected to convene later this week to discuss both regular and extraordinary resolutions that will help with the conversion.
In a regulatory filing made over the weekend at the Nigerian Exchange (NGX), Abbey Mortgage Bank's shareholders are expected to give the board of directors permission to raise and distribute the company's issued share capital in order to meet the Central Bank of Nigeria's new N50 billion share capital and share premium capital requirements for a regional commercial bank.
It is anticipated that the meeting will also require the board to take any necessary or prudent steps to implement the recapitalization resolution, including; but not limited to, appointing experts and advisors; allocating shares resulting from the increase in share capital and listing them on the Nigeria Exchange floor; adhering to regulatory authorities' orders; and taking any other necessary or prudent steps to implement the resolutions' goals.
Additionally, shareholders would approve the company's plan to become a regional commercial bank and change the company's legal and brand name from Abbey Mortgage Bank Plc to "Abbey Bank Plc."
In keeping with the company's plan to become a regional commercial bank, the resolutions also contained amendments to the company's articles of association and memorandum to reflect the new name and object clauses.
The CBN's circular on the review of the minimum capital requirements for commercial, merchant, and non-interest banks was published in March 2024.
The top bank raised the new minimum capital to N500 billion for mega banks, or commercial banks with international affiliations; it was N200 billion for commercial banks with national authorization, and N50 billion for commercial banks with regional licenses.
Others included merchant banks, N50 billion; non-interest banks with national licence, N20 billion and non-interest banks with regional licence will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026.
Legit.ng had reported that NOVA Merchant Bank announced that it is set to begin conversion to an entire commercial banking business after getting a license from the Central Bank of Nigeria (CBN).
The bank also appointed Adebowale Oyedeji as the new managing director and chief executive officer to manage the bank's operations.
Bankers speak on causes of cash scarcity
Legit.ng reported that the Association of Senior Staff of Banks, Insurance, and Financial Institutions has said that the Central Bank of Nigeria's inability to satisfy the cash demands of commercial banks is the reason for the nation's growing cash crisis.
Olusoji Oluwole, president of ASSBIFI emphasized the negative effects of the shortage, especially as the holiday season draws near, emphasizing the need for cash in the cause of business and shopping.
He pointed out that while shops make money by selling cash rather than reinvesting it in the banking system, the apex bank has not been able to match the cash demands of banks.
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Source: Legit.ng
