CBT on Licensing and Governance

What is the primary objective of licensing financial institutions?

• Generate revenue for CBN

• Control interest rates

• Ensure only fit and proper persons own and operate FIs

• Promote foreign investments

What is the validity period for an Approval-in-Principle (AIP)?

• 3 months

• 6 months

• 12 months

• Indefinite

What body validates new products and services under Islamic Finance in Nigeria?

• SEC

• NDIC

• FRACE

• FRC

True or False: A Final Licence from the CBN allows a financial institution to commence operations.

• True

• False

What is the maximum number of directors allowed on the Board of a Payment Service Bank (PSB)?

• 7

• 9

• 13

• 15

Who chairs the Board Audit and Risk Committees in a bank?

• Executive Director

• Any Non-Executive Director

• Independent Non-Executive Director

• Managing Director

What is the tenure limit for a Managing Director/CEO of a bank?

• 10 years

• 12 years

• 15 years

• Unlimited

What type of institution operates according to Islamic commercial jurisprudence?

• Development Finance Institution

• Non-Interest Financial Institution

• Bureau De Change

• Credit Guarantee Company

True or False: The Financial Holding Company (FHC) Board must consist of only executive directors.

• True

• False

Which guideline regulates the governance structure and ethical standards of Nigerian banks?

• BOFIA 2020

• CBN Act 2007

• Code of Corporate Governance

• Financial Soundness Framework