The Central Bank of Nigeria (CBN) has given approval in principle to Zenith Bank Plc to operate as a financial holding company, ‘Zenith Holdco Plc’.
A holding company is a parent business entity that holds the controlling stock or membership interests in its holding companies.
In a statement signed by the Company Secretary, Michael Otu, on Friday, the lender revealed plans to change its organisational structure.
With this change, the organisation will have a banking subsidiary along with other subsidiaries in the financial services sector.
Part of the statement read, “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.”
This move will increase the number of banks operating as a financial holding company in the country.