Sterling Bank obtained the Central Bank of Nigeria (CBN)’s go-ahead to transform to a holding company subject to meeting certain conditions outlined by the regulator.
It also got an approval-in-principle for a permit to start a non-interest banking unit to be known as Alternative Bank Limited, the lender said in a regulatory filing on Wednesday seen by PREMIUM TIMES.
With the holdco structure, the financial services group to emerge from Sterling Bank and its subsidiaries will own controlling stakes in them, while overseeing management resolutions without direct involvement in their day-to-day business.
The model offers protection against risk of exposure in that the parent company is not liable for the loss of any of the subsidiaries in the event of bankruptcy.
“The Alternative Bank Limited will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs,” the note said.
“The overall business will focus on social impact, corporate responsibility, and ensure religious compliance in all its dealings.”
Sterling Bank joins GTCO, Nigeria’s biggest lender by market value, as the second bank to restructure to a holdco this year. FBN Holdings, the FCMB Group and Stanbic IBTC Holdings have already joined the fold while Access Bank is on course to adopting that corporate identity.
Shares in Sterling Bank traded up 2.05 per cent in Lagos on Wednesday following the news.
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