Nigeria’s central bank approves JPMorgan merchant bank plan
By the AFREEQUE newsroom, based on Punch
The Central Bank of Nigeria has given JPMorgan approval in principle to establish JPMorgan Merchant Bank Nigeria Limited, subject to a final licence. The future merchant bank will still have to meet regulatory requirements before starting operations, the central bank announced, according to Punch.
The Central Bank of Nigeria (CBN) has granted JPMorgan approval in principle to establish JPMorgan Merchant Bank Nigeria Limited, a merchant bank intended to provide institutional financial services. The announcement was made on Friday by Michael Akuka, director of institutional communications and investor relations at the CBN, Punch reports.
The future subsidiary will have to register with the Corporate Affairs Commission and meet regulatory and operational requirements before obtaining a final banking licence. It will only be able to begin operations after this final authorisation, the CBN said.
The merchant bank is expected to offer corporate finance, investment banking, capital-raising and advisory services, rather than retail banking services. The CBN links the decision to its banking sector recapitalisation programme and other reforms aimed at strengthening financial stability, investor confidence and Nigeria’s integration into global capital markets.
CBN governor Olayemi Cardoso said the reforms aimed to build a financial system capable of attracting investment and supporting economic growth.
