Publication:
Financial Sector Assessment Program : Nigeria - Banking Cross-Border Issues

Simple item page
dc.contributor.authorInternational Monetary Fund
dc.contributor.authorWorld Bank
dc.date.accessioned2013-10-01T16:54:12Z
dc.date.available2013-10-01T16:54:12Z
dc.date.issued2013-05
dc.description.abstractThe introduction of new much higher minimum capital requirements and the subsequent banking sector consolidation created a platform for Nigerian banks to expand within the region and more globally. After capitalization, several Nigerian banks found themselves with large amounts of capital while there was an environment of uncertainty about the situation in Nigeria in the aftermath of the 2009 Nigerian banking crisis. This together with new market expansion opportunities gave an impulse to a number of Nigerian banks to quickly expand within West and Central Africa, as well as more globally. The global crisis itself provided Nigerian banks with opportunities to expand within Sub-Saharan Africa (SSA). With Nigerian banks' presence in many countries in the region and more globally, the Central Bank of Nigeria (CBN) needed to overhaul its traditional supervisory practices and embark on rigorous supervision of its banks on a consolidated basis taking into account all their subsidiaries and branches abroad-a task with which even advanced supervisors still struggle. This note focuses on issues of cross-border coordination and provides policy recommendations that could be taken into consideration by the CBN. Section two provides a brief description of the expansion and cross-border liquidity flows of some Nigerian banks. Section three focuses on issues related to supervisory cross-border coordination. Section four offers some recommendations. Several Nigerian banks have expanded abroad, primarily within West and Central Africa over the recent years. Banks in Nigeria with international activities have to maintain a Capital Adequacy Ratio (CAR) of at least 15 percent, compared with the CAR requirement of 10 percent for the other Nigerian banks. At least two of those banks with headquarters in Nigeria have subsidiaries across Africa and representative offices and/or subsidiaries in Europe. One regional bank has headquarters in Togo, while its main subsidiary with about 44 percent of the total assets domiciles in Nigeria. Cross-border liquidity flows of Nigerian banks fluctuated from month to month in 2012, as Nigerian banks have been becoming more active in the region. According to the CBN, initial experiences have been encouraging, but it faces some serious challenges in further strengthening of cross-border supervision. A recent CBN circular issued in May 2012, restricting Nigerian banks' capacity to capitalize their foreign subsidiaries, will seem to be an unnecessary restriction on an activity that will generally be managed through the supervisory process.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/05/18170455/nigeria-banking-cross-border-issues-technical-note
dc.identifier.doi10.1596/15966
dc.identifier.urihttps://hdl.handle.net/10986/15966
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACQUISITIONS
dc.subjectASSETS
dc.subjectBANK NEGARA MALAYSIA
dc.subjectBANKING CRISIS
dc.subjectBANKING SECTOR
dc.subjectBANKING SUPERVISION
dc.subjectBANKING SYSTEM
dc.subjectBANKS
dc.subjectBUSINESS CASE
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL ALLOCATION
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL NEEDS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITALIZATION
dc.subjectCAR
dc.subjectCENTRAL BANKS
dc.subjectCEOS
dc.subjectCOLLECTIVE
dc.subjectCOLLECTIVE ACTION
dc.subjectCOLLECTIVE ACTION PROBLEMS
dc.subjectCONFIDENTIALITY
dc.subjectCONSOLIDATED SUPERVISION
dc.subjectCONSOLIDATION
dc.subjectCORPORATION
dc.subjectCOUNTRY CAPITAL
dc.subjectCROSS-BORDER CAPITAL
dc.subjectCROSS-BORDER EXPANSION
dc.subjectCROSS-BORDER ISSUES
dc.subjectCROSS-BORDER TRANSACTION
dc.subjectCROSS-BORDER TRANSACTIONS
dc.subjectDATA RELIABILITY
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSIT INSURANCE SCHEMES
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDISCRETION
dc.subjectDIVESTMENT
dc.subjectDUE DILIGENCE
dc.subjectECONOMIC DOWNTURN
dc.subjectEIB
dc.subjectEUROPEAN CENTRAL BANK
dc.subjectEXCHANGE RATE
dc.subjectEXPOSURE
dc.subjectEXPOSURES
dc.subjectFINANCE CORPORATION
dc.subjectFINANCIAL ANALYSIS
dc.subjectFINANCIAL CONGLOMERATE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL STABILITY
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN EXCHANGE
dc.subjectHARMONIZATION
dc.subjectHOME COUNTRY
dc.subjectINFORMATION SHARING
dc.subjectINITIATIVE
dc.subjectINSOLVENCY
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL FINANCE
dc.subjectJURISDICTIONS
dc.subjectLIQUIDITY
dc.subjectLOCAL CURRENCY
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARKET EXPANSION
dc.subjectMERGERS
dc.subjectMONETARY POLICY
dc.subjectMULTINATIONAL
dc.subjectMUTUAL RECOGNITION
dc.subjectNATIONAL BANK
dc.subjectNEW MARKET
dc.subjectOPEN ECONOMIES
dc.subjectOUTSOURCING
dc.subjectOVERSEAS BANKS
dc.subjectPRUDENTIAL REQUIREMENTS
dc.subjectREGIONAL BANKS
dc.subjectREGULATORS
dc.subjectREGULATORY AUTHORITIES
dc.subjectREGULATORY REQUIREMENTS
dc.subjectREORGANIZATION
dc.subjectRESERVE BANK
dc.subjectRESERVE REQUIREMENTS
dc.subjectRISK MANAGEMENT
dc.subjectSHAREHOLDERS
dc.subjectSINGLE SHARE
dc.subjectSTAKEHOLDERS
dc.subjectSUBSIDIARIES
dc.subjectSUBSIDIARY
dc.subjectSUPERVISORY AGENCY
dc.subjectSYSTEMIC RISK
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTREASURY BILLS
dc.subjectVOLATILITY
dc.titleFinancial Sector Assessment Program : Nigeria - Banking Cross-Border Issuesen
dspace.entity.typePublication
okr.date.disclosure2013-08-30
okr.date.doiregistration2025-05-07T11:17:16.076954Z
okr.doctypeEconomic & Sector Work::Financial Sector Assessment Program (FSAP)
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2013/05/18170455/nigeria-banking-cross-border-issues-technical-note
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid188851468096548780
okr.identifier.externaldocumentum000356161_20130830143713
okr.identifier.internaldocumentum18170455
okr.identifier.report80732
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/08/30/000356161_20130830143713/Rendered/PDF/807320ESW0Nige00Box379814B00Public0.pdfen
okr.region.administrativeAfrica
okr.region.countryNigeria
okr.sectorFinance :: General finance sector
okr.themeFinancial and private sector development :: Regulation and competition policy
okr.themeFinancial and private sector development :: Standards and financial reporting
okr.themeTrade and integration :: International financial architecture
okr.themeFinancial and private sector development :: Other financial and private sector development
okr.topicPublic Sector Corruption and Anticorruption Measures
okr.topicBanks and Banking Reform
okr.topicPrivate Sector Development::Emerging Markets
okr.topicLaw and Development::Corporate Law
okr.topicFinancial Crisis Management and Restructuring
okr.topicFinance and Financial Sector Development
okr.topicPublic Sector Development
okr.unitFinancial Sector Assessment Prog (FFSFP)
okr.volume1 of 1
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
807320ESW0Nige00Box379814B00Public0.pdf
Size:
828.77 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
807320ESW0Nige00Box379814B00Public0.txt
Size:
30.58 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Financial Sector Assessment Program