CBN gives condition for opening new banks

Gbola Subair, Abuja - 28.08.2008

The Central Bank of Nigeria (CBN) has made provision for adequate security in the banking halls as part of the requirements for licensing new banks.

The move, according to the Nigerian Tribune findings, was as a result of incessant armed robbery attacks on banks nationwide.

To ensure that the banking halls were safe and depositors fund protected, the apex bank, in the new licensing requirements, made it mandatory for banks to, among other things, provide evidence of adequate security arrangements, both physical and logical.

The arrangements included uniformed or plain cloth policemen, uniformed security guards, CCTV, especially in the banking hall, strong room and loading bay areas

Others are raid alarm (especially foot operated type) inside the teller cubicles and fire alarms at strategic points within the premises and camera, including cash movement and escort vans fitted with communication equipment.

Apart from security, the apex bank, in the new licensing requirements, called for a non-refundable application fee of N500, 000, depositing of N25 billion with the CBN showing evidence of contribution by each shareholders.

Upon the submission of the application fee and N25 billion, the promoters of the new banks were expected to provide feasibility report and business plan which would contain minimum paid-up capital requirement of N25 billion for new banking license, ownership structure in columnar format showing name of proposed investor(s), profession, business and percentage shareholding.