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CBN to Overhaul Financial Holding Company Framework to Ring-Fence Banks

The Central Bank of Nigeria is set to introduce a revised framework for financial holding companies to better insulate banking operations from non-banking risks. Following the successful completion of the banking sector recapitalization, the regulator is shifting its focus toward enhanced governance and stricter capital requirements for Tier-1 banking groups. MPC members noted the sector remains resilient and liquid, though they emphasize that new oversight measures are essential to sustain stability and curb excessive liquidity.

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