Guaranty Trust Holding Company (GTCO) faces a projected N115.10 billion capital deficit under a new Central Bank of Nigeria (CBN) proposal. The draft framework requires holding companies to maintain paid-in capital of at least 120% of the combined regulatory capital of all subsidiaries.
This mandate aims to insulate core banking activities from other operations within the holding structure. The potential requirement creates fresh capital pressures following recent industry-wide recapitalization efforts.
GTCO may need to return to the market for additional funds to satisfy the proposed guidelines. The regulation affects several major Nigerian lenders currently operating under holding company structures.