Sterling Bank Plc has received the Central Bank of Nigeria’s endorsement for a solitary license for its non-interest banking enterprise that will function under the name – Alternative Bank Limited.
Sterling Bank Plc unveils shariah-compliant subsidiary
Non-interest banking or Islamic banking functions on essential principles, inclusive of interest prohibition in debt and exchange contracts. It also restricts the financing of unethical ventures, like tobacco, alcohol, ammunition manufacturing, adult entertainment institutions, and gambling.
The bank divulged on the Nigerian Exchange that the new-fangled subsidiary resonates with the approval-in-principle arranged to the Sterling Bank Plc for the reorganization as a holding company (HoldCo).
The Central Bank of Nigeria stated that the Sterling Bank Plc has received the bank’s approval-in-principle for a solitary license for its Islamic banking business – the anticipated Alternative Bank Limited.
The authentication is a consequence of the approval-in-principle approved to the Sterling Bank Plc for the reorganization of the holding company (HoldCo) and focus on the accomplishment of criteria as postulated by the Central Bank of Nigeria, the latter stated.
Sterling Bank Plc unveiled the new-fangled subsidiary, Alternative Bank Ltd, which will concentrate on facilitating collaborations that link individuals and business enterprises leveraging technology to birth business optimization whilst resolving an individual’s everyday fiscal necessities.
The comprehensive business will emphasize the social impact and corporate responsibility.
With the sanction, the bank’s new-fangled subsidiary has partnered with Taj Bank, Jaiz Bank, and Lotus Bank Ltd as the Islamic banks in the nation.
Like other Islamic banks, Alternative Bank Ltd will guarantee religious amenability in all its endeavours, according to Sterling Bank.