Zenith Bank Plc (NGX: ZENITHBANK) has obtained an Approval-In-Principle from the Central Bank of Nigeria (CBN) for it to operate a non-operating Financial Holding Company structure.
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The term financial holding company (FHC) refers to a type of bank holding company (BHC) that offers a range of non-banking financial services. BHCs can engage in non-banking financial activities if they register as FHCs.
These activities, which are not permissible for ordinary bank holding companies include insurance underwriting, securities dealing, merchant banking, underwriting initial public offerings (IPOs), and investment advisory services.
The bank notified its shareholders and the general public of the CBN approval via an announcement it published on the Nigerian Exchange Limited.
The bank went further to state that the CBN also 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 Plc until the commencement of Zenith Holdco Plc.
The bank promised to communicate further details in respect of the Holdco to the market in due course.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur