The Central Bank of Nigeria (CBN) has granted Zenith Bank Plc preliminary license to function as a financial holding company, dubbed “Zenith Holdco Plc.”
A holding company is a parent corporation that holds the controlling stock or membership interests in its subsidiaries.
Friday, the lender announced its intention to alter its organizational structure in a statement signed by Corporate Secretary Michael Otu.
With this modification, the organization will have a banking subsidiary in addition to other financial services-related businesses.
A portion of the statement said, “The CBN has granted Zenith Bank preliminary authorisation to operate a non-operating financial holding company structure.
“Furthermore, the CBN approved Mr. Jim Ovia as Chairman of Zenith Holdco Plc (in-formation, with Mr. Jim Ovia continuing as Chairman of Zenith Bank till the beginning of Zenith Holdco.”
This action will boost the number of banks in the country that operate as financial holding companies.