Leading multinational financial service provider, Zenith Bank Plc. has been given approval by Central Bank of Nigeria (CBN) in principle to operate as a financial holding company, ‘Zenith Holdco Plc’.
The bank disclosed this on Friday, March 3rd, 2023 in a statement by the Company Secretary, Michael Otu. The lender also revealed plans to change its organisational structure.
The organisation, with this change will have a banking subsidiary along with other subsidiaries in the financial services sector.
The statement reads in part; “The CBN has granted approval-in-principle for Zenith Bank to operate a non-operating financial holding company structure.”
“Furthermore, the CBN 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 until the commencement of Zenith Holdco.”
Interestingly, this move will increase the number of banks operating as a financial holding company in the country.
For those who don’t know, a holding company is a parent business entity that holds the controlling stock or membership interests in its holding companies.