Nigeria: Anxiety Grips Banks Over Proposed Niche Banking, Begin Sale of Subsidiaries

10 May 2010

In apparent reflection of increasing apathy to the Holding Company arrangement under the proposed new niche banking model, a number of banks have begun moves to sell off their subsidiaries.

Financial Vanguard investigations revealed that the thinking of most bankers is that the Holding Company arrangement is very difficult and problematic to implement. It is believed this arrangement might lead to gross undercapitalisation in banks with huge investment in subsidiaries.

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