The Universal Banking (UB) model adopted in 2001, allowed banks to diversify into non-bank financial businesses. Following the consolidation programme, banks became awash with capital. Some operators abused the laudable objectives of the UB Model with banks operating as private equity and venture capital funds to the detriment of core banking practices.
To address the observed challenges, the CBN reviewed the UB Model with a view to directing banks to focus on their core banking business only.