Nigerian Police Force MFB Gets Approval to Covert Into Commercial Bank, Begins Process
- NPF Microfinance Bank has started the process of transitioning into operating as a commercial bank
- Shareholders of the bank have already approved the transition, and effort is being made to raise capital to meet CBN's regulatory requirements
- Also, the microfinance bank has appointed new Deloitte & Touche as external auditors to support the bank’s transition process
The Nigerian Police Force (NPF) Microfinance bank has secured the approval of its shareholders to transition into a Deposit Money Bank.
A Deposit Money Bank also known as a commercial bank is a financial institution that primarily accepts deposits from customers and provides a range of banking services such as savings, and loans.
In a statement submitted to the Nigerian Exchange, NPF Microfinance said the decision to transition into a commercial bank was made at the 29th Annual General Meeting of the bank.
Source: Facebook
NPF transition plans
NPF microfinance bank has been in operation since 1993, offering banking products and services for both serving and retired Officers and men and women employed by the Nigeria Police Force and the general banking public.
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To convert into a full-fledged commercial bank, the bank will now have to raise capital to pave the way for the transition.
During the AGM the NFP microfinance shareholders agreed to increase its share capital by the number of shares necessary to meet the regulatory requirements for the conversion.
NPF said:
"That in furtherance to the Bank’s strategy to transition to a Deposit Money Bank, the Company’s share capital be and is hereby increased by the number of shares which will be required to meet the regulatory requirement to convertvto a Deposit Money Bank”.
More resolutions
Additionally, during the Annual General Meeting, new directors were appointed to contribute their expertise and guidance to the bank’s transition process.
The directors were given the power to determine the number of new ordinary shares to be issued, as well as allocate these shares
The statement continues:
"The Directors are hereby authorized to pass the relevant resolutions, which include increasing the Company's share capital by a determined number of new ordinary shares and allotting these shares to subscribing shareholders through public offers, rights issues, or placements, with the provision that the newly issued ordinary shares shall hold equal status in all aspects with the Company's existing ordinary shares."
The approval of these resolutions signifies a momentous milestone for NPF Microfinance Bank as it begins its transition into a commercial bank.
CBN orders banks to demand customers' social media accounts, 9 other information
Meanwhile, the Central Bank of Nigeria in its push to ensure financial institutions are not havens for criminals has announced a new set of instructions for banks.
The instructions to banks and other financial institutions include that customers' bank accounts should also have details of their social media handles.
CBN hopes the move will enhance its fight against money laundering, terrorism financing, and proliferation financing.
Source: Legit.ng
