Sterling Bank gets licence for non-interest banking in Nigeria
Sterling Bank has received a licence from the Central Bank of Nigeria (CBN) to provide non-interest banking (NIB) services in Nigeria.Sterling Bank has received a licence from the Central Bank of Nigeria (CBN) to provide non-interest banking (NIB) services in Nigeria.
Sterling Bank's Group Head of Non-Interest Banking Basheer Oshodi told Leadership newspaper that the bank will fully explore the non-Interest banking space as an effective means towards achieving wholesome financial inclusion in the country.
"Given our understanding of the need to address a huge market of adult Nigerians presently excluded from access to formal banking services (..)
is our belief at Sterling Bank that non-interest banking can seriously contribute to wealth creation in the country; while in the same breath reducing poverty and unemployment," he said.
He added that the Bank has developed a range of specialised banking products to meet a wide range of customer needs, including various transactional accounts, savings and investment account options involving profit sharing, partnership contracts, trading contracts and lease contracts.
In addition, the bank will acquire and deploy a different IT base to separate non-interest banking customers' accounts from regular banking customers.
Non-interest banking has had a steady growth in the country, mainly because of the development of Islamic Banking.
To encourage its development, the CBN has launched Liquidity Management Instruments to assist non-interest banks to be able to manage their liquidity since they cannot put their funds in treasury bills.