CBN Grants Zenith Bank Approval To Operate As Holding Company

Zenith Bank has received the approval of the Central Bank of Nigeria to operate as a financial holding company.

In a statement signed by the Company Secretary, Michael Otu, on Friday, the company revealed plans to change organisational structure of the bank.

A holding company is a separate parent company created to own a controlling interest in subsidiary companies.

The  specific function a holding is to control and manage other companies of which it holds the majority shares. 

With this change, the organisation will have a banking subsidiary along with other subsidiaries in the financial services sector.

Part of the statement reads, “The CBN has granted approval-in-principle for Zenith Bank to operate a non-operating financial holding company structure.

“Furthermore, the CBN approved Mr Jim Ovia as the Chairman of Zenith Holdco Plc (in-formation and for Mr Jim Ovia to also continue as the Chairman of Zenith Bank until the commencement of Zenith Holdco.”

This move will increase the number of banks operating as a financial holding company in the country.