Sterling Bank gets nod for non-interest bank

Sterling Bank Plc has obtained approval-in-principle from the Central Bank of Nigeria, CBN for the proposed Alternative Bank Limited. The bank made this known through a notice signed by the secretary, Temitayo Adegoke, and filed with the exchange, in which it states that CBN had granted it an Approval-in-Principle for a separate license for its […]

Sterling Bank Plc has obtained approval-in-principle from the Central Bank of Nigeria, CBN for the proposed Alternative Bank Limited.

The bank made this known through a notice signed by the secretary, Temitayo Adegoke, and filed with the exchange, in which it states that CBN had granted it an Approval-in-Principle for a separate license for its non-interest banking business.

This comes after the bank obtained Approval-in-Principle to restructure into a holding company (HoldCo), although still subject to the fulfillment of certain conditions by the apex bank.

A non-Interest banking business engages in trading, investment and commercial activities as well as the provision of financial products and services without the conventional interest charges.

“The approval is sequel to the approval-in-principle granted to the bank for the restructuring as a holding company (HoldCo) and subject to the fulfillment of conditions as stipulated by the CBN,” the statement said.

It added that Alternative Bank Limited will focus on building partnerships that connect individuals and businesses leveraging technology to create business optimization while solving an individual’s daily financial needs.

“The overall business will focus on social impact, corporate responsibility, and ensure religious compliance in all its dealings,” it added.

Shares in the bank traded up 2.05 per cent on Wednesday following the announcement.