Nigeria’s Guaranty Trust Holding Company (GTCO) invested $238 million into its commercial banking subsidiary, Guaranty Trust Bank, to meet new capital requirements set by the country’s central bank.
A central bank directive last year raised the minimum capital requirement for international banks ten-fold to 500 billion naira ($326 million), a move aimed at shoring up the country’s financial sector against risks. GTCO said its new capital injection has raised the bank’s capital beyond the required minimum, and will also help it expand its portfolio of loans and securities.
Nigerian banks are facing a challenge from digital-only fintechs competing for customer deposits on the basis of new technology enabling reliable service delivery on smartphones. GTCO hopes that its capital investment will strengthen the tech capabilities of its bank to harness “emerging opportunities” in Nigeria.