The Central Bank of Nigeria has granted approval in principle for Zenith Bank Plc to transition into a non-operating financial holding company structu
The Central Bank of Nigeria has granted approval in principle for Zenith Bank Plc to transition into a non-operating financial holding company structure.
A holding company is a parent business entity that holds the controlling stock or membership interests in its holding companies.
According to a statement signed by the Company Secretary/General Counsel, Micheal Osilama Out, the CBN also approved Jim Ovia as the chairman of Zenith Holdco Plc.
In the meantime, Ovia will continue to function as the chairman of Zenith Bank Plc, a position he has held since 2014, until the commencement of Zenith Holdco Plc.
The statement noted that further details in respect of development will be communicated to the Nigerian Exchange in due course.
With the approval, Zenith Bank will join other big banks like FBN Holdings, GTCO, and Access Holdings, among others as a financial holding company.
This move is coming barely two weeks after the CBN issued a circular notifying commercial banks of the new directive that will determine, stipulate that tenure of their Executive Directors (EDs), Deputy Managing Directors (DMDs) and Managing Directors (MDs).
The new regulatory guidelines puts a timeline on the cumulative number of years senior bank officers could occupy executive board positions.
Ever since the CBN disclosed the new tenure guideline, some top bank executives have had to resign.
Last week, Zenith Bank’s Deputy Managing Director Dr Adaora Umeoji retired.