Photograph — Bloomberg

Three new banks have been granted licenses of operation in Nigeria as confirmed by the Central Bank of Nigeria (CBN) through its website. According to the apex bank, the list of Deposit Money Banks (DMBs) and financial holding companies operating as of July 23rd, 2019 increased with the addition of Titan Trust Bank Limited, Globus Bank Limited and TAJ Bank Limited.

Titan Trust Bank was given a commercial banking license with national authorization, increasing the commercial banks to 11. Banks with national authorization are banks with a capital base of about N25 billion and are allowed to operate in all states of the federation but cannot operate outside the country.

While Globus Bank was granted a commercial banking license with regional authorization. Commercial banking licenses are given to banks that have a capital base of N10 billion and restricted to operate within the geographical scope of five to ten states. This increases commercial banking operators in the country to three.

Lastly, Taj Bank Limited was issued with a non-interest banking license as the only lender with regional authorization, increasing the number of Non-interest banks in the country to two.

The advent of these three banks into the Nigerian banking system means more jobs and employment opportunities. This new development will also create broader banking options for customers and as such, increase competition among banks in the country.

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