The Central Bank of Nigeria (CBN) had on Tuesday 23rd July 2019 expanded the Nation's banking space by issuing three new banking licenses to some Deposit Money Banks (DMB). With the additional licenses, the number of DMBsoperating in the country has increased to 23 from the previous 21.
The new banks includeTitan Trust Bank Limited, TAJ Bank Limited and Globus Bank Limited. While two of the newly licensed banks will operate as commercial lenders, the third one, TAJ Bank Limited was licensed to operate as a non-interest bank.
Recall that before the 2005 banking reform, Nigeria has as many as 89 DMBs operating as commercial and merchant banks. However, the reform, which hikes minimum capital base to 25 billion nairas from the initial 2 billion naira capital base. The development reduced the number of DMBs then, to 24 universal banks.
Subsequent realignment and take over by the regulators led to further consolidation in the operations of the banks in a downward reduction in the number of DMBs in the country.
Similarly, the newly licensed TAJ Bank Limited would complement Jaiz Bank Limitedcurrently operating as the only non-interest bank in the country.
