What are the laws of banking in Nigeria?

What are the laws of banking in Nigeria?

The primary legislation that regulates and directs the affairs and operations of banks in Nigeria is the Banks and other Financial Institution Act (BOFIA of the Act). This Act grants the Central Bank of Nigeria the power and authority to supervise and regulate all banks and other financial institutions in Nigeria.

What are the banking laws and regulations?

Banking law is the broad term for laws that govern how banks and other financial institutions conduct business. Banks must comply with a myriad of federal, state and even local regulations. Lawyers perform a wide variety of functions that relate to creating, following and enforcing regulations.

What is the name of the body regulating banks in Nigeria?

In its role as the Nigerian apex bank and primary regulator of the banking sector, the Central Bank of Nigeria (CBN) has, over the years, implemented various reforms and policies aimed at ensuring that the Nigerian banking sector remains reliable and capable of driving efficiency in economic activities.

Who is a banker in Nigerian law?

Dr H.L Hart, in the Law of Banking defines a bank/banker as “A person or company carrying on the business of receiving money and collecting drafts for customers subject to the obligation of honouring cheques drawn upon them from time to time by customers to the extent of the amount available on their current account.” …

What is the first banking legislation in Nigeria?

No banking legislation existed until 1952, at which point Nigeria had three foreign banks (the Bank of British West Africa, Barclays Bank, and the British and French Bank) and two indigenous banks (the National Bank of Nigeria and the African Continental Bank) with a collective total of forty branches.

What are the objectives of bank regulation?

The objective of Banking Regulation Act, 1949 is to: Provide specific legislation containing comprehensive provisions, particularly to the business of banking in India. Prevent such bank failures by prescribing minimum capital requirements. Ensure the balanced development of banking companies.

Which is an example of a banking regulation?

Examples of bank regulations include capital requirements and limits on interest rates. Member banks of the Federal Reserve are subject to further regulations, such as the requirement to buy stock in the Federal Reserve System.

What is the purpose of bank regulation?

Bank regulation is intended to maintain banks’ solvency by avoiding excessive risk. Regulation falls into a number of categories, including reserve requirements, capital requirements, and restrictions on the types of investments banks may make.

Who is a banker and customer?

A person whose money has been accepted by the banker on the footing that he undertakes to honour cheques unto the amount standing to his credit is a customer of the bank irrespective of whether his connection is short or long duration.

What is the relationship between a banker and customer?

The primary relationship between a banker and his customer is a debtor and a creditor or vice versa.

Which bank is first established in Nigeria?

Bank of British West Africa
In 1892, the African Banking Corporation and the Bank of British West Africa, now First Bank of Nigeria, were established in Nigeria.

Who started banking system in world?

The concept of banking may have begun in ancient Assyria and Babylonia with merchants offering loans of grain as collateral within a barter system. Lenders in ancient Greece and during the Roman Empire added two important innovations: they accepted deposits and changed money.

What kind of laws do banks have in Nigeria?

The primary legislation for the regulation of banks in Nigeria is the Banks and Other Financial Institutions Act (BOFIA) which, with the Central Bank of Nigeria (Establishment) Act 2007 (CBN Act), gives the Central Bank of Nigeria (CBN) powers to supervise and regulate banks and other financial institutions in Nigeria.

What are the regulatory authorities for banking regulation in Nigeria?

Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, which established the Autonomous Foreign Exchange Market and provides the regulatory framework for foreign exchange transactions in Nigeria. 2. What are the regulatory authorities for banking regulation in your jurisdiction?

What are the requirements for a bank licence in Nigeria?

Copies of letters of offer and acceptance of employment in respect of the management team. Minimum paid up capital requirement. The minimum paid-up capital requirements for the different categories of banks are as follows: Regional commercial banking licence: NGN10 billion or other prescribed amount.

Who is the lead bank regulator in Nigeria?

The lead bank regulator is the Central Bank of Nigeria (CBN) which was established by the Central Bank of Nigeria (Establishment) Act (CBN Act). Ensure monetary and price stability. Issue legal tender currency. Maintain external reserves to safeguard the international value of the currency.