BANKS AND OTHER FINANCIAL INSTITUTIONS ACT

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BANKS AND OTHER FINANCIAL INSTITUTIONS ACT

CHAPTER B3 LAWS OF THE FEDERATION OF NIGERIA, L.F.N. 2004

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EXPLANATORY MEMORANDUM

This Act which has been amended by the (Banks and Other Financial Institutions (Amendment) Act 2002] seeks to regulate the operations of bank and other financial institutions in Nigeria.

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ARRANGEMENT OF SECTIONS 

Part 1: Banks – Establishment of Banks Etc.

1. Functions, powers and duties of the Central Bank of Nigeria

2. Banking business

3. Application for grant of licence

4. Investment and release of prescribed minimum paid-up share capital

5. Power to revoke or vary conditions of licence

6. Opening and closing of branches.

7. Reconstructing, re-organisation, merger and disposal, etc. of bank.

8. Operation of foreign banks in Nigeria

9. Minimum paid-up share capital of banks and compliance with minimum paid-up share capital requirement.

10. Shareholder’s voting right to be proportional to shareholding

11. Restriction of legal proceedings in respect of shares held in the name of another.

12. Revocation of licence.

13. Minimum capital ratio.

14. Non-compliance with capital ration requirement.

15. Minimum holding of cash reserves, specified liquid assets, special deposits and stabilisation securities.

Duties of Banks

16. Maintenance of reserve fund

17. Restriction on dividend

18. Disclosure of interest by directors, managers and officers.

19. Prohibition of employment of certain persons and inter-locking directorship, etc.

20. Restriction on certain banking activities.

21. Acquisition of shares in small and medium-scale industries, agricultural enterprises and venture capital companies.

22. Restriction on operations of merchant banks.

23. Display of interest rates

Books of account

24. Proper books of account.

25. Returns by banks

26. Publication of consolidated statements.

27. Publication of annual accounts of banks

28. Contents and forms of accounts.

29. Appointment, power and report of approved auditor

30. Relationship with specialised banks and finance houses

Supervision

31. Appointment and power of Director of Banking Supervision and other examiners.

32. Routine examination and report thereon.

33. Special examination.

34. Power to examine books of other financial institutions and specialised banks

35. Failing banks

36. Control of failing bank

37. Power over significantly under-capitalised banks

38. Management of failing bank

39. Power of the Bank to revoke licence or apply to the Court.

40. Application to the Federal High Court for winding up

41. Legal Proceedings, etc.

42. Corporation to forward returns

General and Supplemental

43. Restrictions on the use of certain names.

44. General restriction on advertisement for deposits.

45. Power of the President to proscribe trade union.

46. Closure of bank during a strike

47. Prohibition of the receipt of commissions, etc. by staff of banks.

48. Disqualification and exclusion of certain individuals from management of banks.

Miscellaneous Offences

49. Offences by companies, etc. and by servants and agents.

50. Offences by directors and manager of banks

51. Penalties for offence not otherwise provided for.

52. Jurisdiction of the Federal High Court.

53. Protection against adverse claims.

54. Priority of local deposit liabilities.

55. Application of Companies and Allied Matters Act Cap. C20

56. Application of Nigeria Deposit Insurance Corporation Act Cap N102

57. Power to make regulations

Part II  – Other Financial Institution

58. Prohibition of unlicensed financial institutions.

59. Application for licence

60. Failure to comply with conditions of licences.

61. Supervisory power of the Bank

62. Control of failing other financial institutions.

63. Application of Act to other financial institutions.

Part III – Miscellaneous and Supplementary

64. Failure to comply with rules, etc.

65. Power as to offences and the Attorney-General’s fiat

66. Interpretation

67. Short title

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BANKS AND OTHER FINANCIAL INSTITUTIONS ACT, 1991, LAWS OF THE FEDERATION OF NIGERIA

Part 1: Banks – Establishment of  Banks, Etc.

ALPHABETICAL INDEX TO THE LAWS OF NIGERIA