Sterling Bank was authorized to convert to a holding company by the Central Bank of Nigeria (CBN), according to the regulator’s terms.
The lender also received approval-in-principle for a permit to launch a non-interest banking unit called Alternative Bank Limited, according to a regulatory file reviewed on Wednesday.
The financial services organization that emerges from Sterling Bank and its subsidiaries will possess controlling holdings in them, while overseeing managerial resolutions without being directly involved in their day-to-day operations, according to the Holdco structure.
In the event of a liquidation, the major business is not responsible for any loss of any of the subsidiaries, hence the framework offers risk protection.
The statement stated, “The Alternative Bank Limited will focus on developing partnerships that connect individuals and organizations using technology to achieve business optimization while satisfying an individual’s daily financial needs.”
“In all of its interactions, the total firm will emphasize on social effect, corporate responsibility, and religious conformity.”
Sterling Bank is the second bank to transform to a Holdco this year, after GTCO, Nigeria’s largest lender by valuation. the FCMB Group, Stanbic IBTC Holdings, and FBN Holdings have already joined, and Access Bank is expected to follow suit.
