The Central Bank of Nigeria (CBN), at the weekend expressed satisfaction with the progress so far made by the board and management of Wema Bank to enable it effectively perform its role of financial intermediation.

The endorsement, according to a statement signed by Mohammed Abdullahi, spokesman for the CBN, followed the recent verification of the bank’s capital raising exercise and loan recovery exercise.

The CBN, the statement added, “has now verified and recognized the N7.5 billion capital raised through a special placement offer and the additional recoveries of N4 billion made by Wema Bank Plc.”

The apex bank also recognised Wema’s Eligible Bank Assets worth N21.573 billion, which was purchased for N15.187 billion by the Assets Management Corporation of Nigeria (AMCON).

“In view of this development, Wema Bank Plc has not only met, but surpassed the capital requirement for a regional commercial banking license, which they applied for under the new banking model,” the statement added.

The bank noted earlier that it successfully recovered N30 billion from debts on its own.

The bank’s application for a regional commercial banking license is receiving the attention, the CBN stressed further.

The decision to opt for a regional licence, Wema Bank said in a statement last year said is a well thought-out strategic move to maximize its infrastructure and provide world-class products and services to customers in the South-South and South-West geo-political zones and Abuja.

The bank also hopes to attract customers that will enjoy online services (a global audience).

The move, the bank said will enable it refocus its business for improved service delivery to customers in its traditional stronghold, instead of dissipating efforts and achieving little.

The regional licence, the bank argued, will not have any negative impact, since about 90 per cent of its operations are located within the chosen regions and Abuja.

“A greater proportion of our infrastructure is in the South-South and South-West, by virtue of our origin, and it is a fact that we have a greater concentration of our branches in Lagos and South-West. If we include the branches in the South-South and Abuja the proportion of branches in these regions constitute about 90 per cent of our branch network,” the statement added.

According to the guidelines released recently by the Central Bank of Nigeria (CBN), when it announced the new banking licence regime, a bank operating a Regional License “shall be entitled to carry on its banking business operations within a minimum of six and a maximum of twelve contiguous states of the Federation, lying within not more than two geo-political zones of the Federation, as well as within the Federal Capital Territory”.

In line with the banks application for a regional banking licence, reduced its branch network from 154 to 137, which accounts for more than 90 per cent of the total deposits and profit of the bank.

Tunde Olofintila, spokesman for Wema Bank had during a recent interactive session, stressed that “although not all customers are expected to stay with us, it is the era of electronic banking where one does not need to be in the banking hall all the time in order to be able to transact business and since the new Wema Bank is one that is out to exploit the dynamic advantages of e-banking, we have no fear.”