CBN moves to limit banks’ funding of sister companies under new rules

The Central Bank of Nigeria (CBN) has introduced a regulatory framework aimed at imposing strict limits on the financial interactions between banks and their affiliated companies. This new set of rules will govern loans, guarantees, asset transfers, and other financial exposures, with the objective of mitigating the risk of financial distress that could potentially affect entire corporate groups. The CBN's initiative reflects a proactive approach to enhance the stability of the banking sector and safeguard the broader economy from interconnected financial vulnerabilities.

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