(Fixes typo in headline)
LAGOS, July 18 (Reuters) – Nigeria’s United Bank for Africa
said on Wednesday it had received approval from the central bank
to transfer its subsidiaries into a newly-formed holding
company, in line with regulatory requirements to separate core
lending from other businesses.
The central bank two years ago scrapped the universal
banking model and directed lenders in Africa’s second biggest
economy to sell their stakes in non-banking subsidiaries or
adopt a holding company structure.
“We have received approval from the central bank to operate
a holding company structure. We are working on the scheme
document and we intend to finalise the structure by the end of
the year,” Chief Financial Officer Ugo Nwaghodoh told an
investor conference call.
UBA’s announcement follows Stanbic IBTC Bank the
local unit of South Africa’s Standard Bank who last
week said it will seek approval from shareholders to form a
holding company next month.
The UBA banking group currently operates in 19 African
countries with interest in real estate and asset management.
(Reporting by Chijioke Ohuocha; Editing by Elaine Hardcastle)
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