The Central Bank of Nigeria has given approval in principle to Zenith Bank to operate as a financial holding company.
In a statement signed on Friday by Michael Otu, the company’s secretary, Michael Otu,the company revealed plans to change its organisational structure.
With this change, the organisation will have a banking subsidiary along with other subsidiaries in the financial services sector.
“The CBN has granted approval-in-principle for Zenith Bank to operate a non-operating financial holding company structure,” the statement read.
“Furthermore, the CBN approved Mr Jim Ovia as the Chairman of Zenith Holdco Plc (in-formation and for Mr Jim Ovia to also continue as the Chairman of Zenith Bank until the commencement of Zenith Holdco.”
In 2010, the CBN introduced a policy which requires banking groups with non-core banking activities to incorporate a holding company structure.
This model enables banks to retain non-core banking business by evolving into a non-operating holding company structure.
The Holdco will hold equity investment in banks and non-core banking businesses in a subsidiary arrangement
