The Central Bank of Nigeria (CBN) has released an updated list of Deposit Money Banks (DMB) in Nigeria as of April 26, 2024.
The latest list released by the CBN contains 43 deposit money banks and categorizes these banks based on the scope of their banking license—international, national, and regional—reflecting their operational jurisdiction and the services they are permitted to offer.
DMB are financial institutions licensed by the CBN to accept deposits from the public and create credit. They are fundamental to the banking ecosystem, impacting everything from individual savings to business investments.
Commercial Banks with International Authorization
These banks are authorized to operate beyond the national boundaries of Nigeria, facilitating international trade and finance.
Institutions such as Access Bank Limited and Zenith Bank PLC are prominent players in this category.
They are well-known for their large asset bases and extensive branch networks, both domestically and internationally.
Commercial Banks with National Authorization
Banks like Citibank Nigeria Limited and Standard Chartered Bank Limited fall into this category. They operate nationwide but do not have the authorization to operate as international banks.
This license type is typical for banks that focus primarily on national operations without the extended complexity and regulation of international finance.
Commercial Banks with Regional Authorization
Regional banks, such as Providus Bank Limited and Suntrust Bank Nigeria Limited, are restricted to operating within specified regions within Nigeria. This limitation often allows these banks to provide tailored financial services that cater specifically to the local needs and economic activities of those regions.
Non-interest banking with National Authorization
Non-interest banks like Jaiz Bank PLC operate under the principles of Islamic banking and are authorized to operate nationally. They do not engage in interest-based transactions and have their operations based on Islamic finance principles, which prohibit earning interest on loans.
Merchant Banks with National Authorization
Merchant banks such as FBN Merchant Bank Limited and Coronation Merchant Bank Limited are specialized institutions focusing on corporate finance, asset management, and serving the investment needs of high-net-worth individuals. These banks do not usually offer retail banking services like checking accounts or personal loans.
Financial Holding Companies in Nigeria
Entities such as FBN Holdings PLC and Access Holdings PLC are included in the list as financial holding companies. These companies hold stakes in various financial institutions across banking, insurance, and asset management sectors, providing a diversified financial services offering.
This categorization by the CBN not only helps potential customers understand the services these banks can offer based on their licensing terms but also aids in regulatory clarity, ensuring that each bank is supervised according to the specific services it offers.
