E-Financial
New Rules to Ban Bailout for ‘Too Big to Fail’ Banks
New global rules to prevent banks that are “too big to fail” from being bailed out by taxpayers have been proposed, according to BBC.
The rules, created by the Financial Stability Board (FSB), a global regulator, will require big banks to hold much more money against losses. Mark Carney, FSB chairman and governor of the Bank of England, said the plans were a “watershed” moment.
BBC quoted him as saying that it had been “totally unfair” for taxpayers to bail out banks after the financial crisis of 2008 and 2009.
“The banks and their shareholders and their creditors got the benefit when things went well,” he told the BBC.
“But when they went wrong the British public and subsequent generations picked up the bill – and that’s going to end”.
Mr Carney explained that the new system would ensure that bank shareholders, and lenders to banks such as bondholders, would become first in line to bear the brunt of future losses if banks could not pay out of their own resources.
“Instead of having the public, governments, [and] the taxpayer rescue banks when things go wrong; the creditors of banks, the big institutions that hold the banks’ debt – not the depositors – will become the new shareholders of banks if banks make mistakes.”
“Let’s face it, the system we’ve had up until now has been totally unfair,” he added.
At its peak in the UK alone, taxpayers’ direct subsidy to banks stood at more than £1 trillion according to a recent report from the National Audit Office.
In the wake of the financial crisis, world leaders asked the FSB to come up with proposals to prevent similar bailouts from happening in the future.
The proposed new rules, which are up for consultation and should take effect in 2019, require “global systemically important banks” to hold a minimum amount of cash to ensure they will be able to survive big losses without turning to governments for help.
The capital set aside should be worth 15-20% of the bank’s assets, the FSB said. That is a far bigger cushion against losses than is required by current banking rules.
RBS sign The UK government still owns an 80% stake in Royal Bank of Scotland
The FSB hopes this stronger policy will prevent taxpayers from being forced to pay billions of pounds again to stop big banks from collapsing, in the event of another financial crisis.
Anthony Browne of the British Bankers’ Association welcomed the proposals.
“The banking industry strongly supports this work, which is a really important step in ending ‘too big to fail’ and ensuring that never again will taxpayers have to step in to bail out banks,” he said.
“We agree with the aims and objectives of the proposals for total loss absorbing capacity (‘TLAC’), that there should be sufficient resources available to absorb losses in the event of bank failure and provide new capital to ensure critical economic functions can continue to be provided,” he added.
Less disruption
“Agreement on proposals for a common international standard on total loss-absorbing capacity for [big banks] is a watershed in ending ‘too big to fail’ for banks,” said Mr Carney.
“Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved without recourse to public subsidy and without disruption to the wider financial system.”
According to the BBC’s business editor Kamal Ahmed, analysts estimate the new capital requirements could cost €200bn (£157bn) for Europe’s banks alone, with the cost for globally significant banks in the US, Japan and China likely to be much higher.
The FSB has published a list of 30 banks it regards as “systemically important”, meaning their collapse could have a wider impact on global financial systems.
In the UK, the banks are Barclays, Standard Chartered, HSBC and the Royal Bank of Scotland.
Lloyds Banking Group has been removed from the list as its potential impact on financial systems has declined in recent years.
The UK government spent around £65bn directly bailing out RBS and Lloyds during the crisis. The government still owns an 80% stake in RBS and 25% of Lloyds.
Analysis: Andrew Walker, economics correspondent, BBC News.
Lehman Brothers was the classic case of a financial institution that was too big to fail – or at least it probably was according to the previous Federal Reserve chairman Ben Bernanke.
Of course it DID fail, and the financial crisis entered a new and more dangerous phase after Lehman filed for bankruptcy in September 2008. The immediate lesson that many policy makers drew – and this is contested – was that it should have been rescued.
And so they decided that other big financial firms would not fail and taxpayers’ money was thrown at the banks around the world.
But there is another lesson drawn from the Lehman episode: that it would be far better to change the rules of finance to ensure that any bank could safely fail if it gets into serious difficulty no matter how big it is.
That’s where the Financial Stability Board’s new proposals come in.
As conversations around money become more complex in a fast-evolving digital world, the need to Building Financially Smart Future and equip young people with the right financial knowledge, has never been more urgent.
Polaris Bank
From spending habits to saving culture, digital transactions, and entrepreneurial thinking, financial literacy is increasingly becoming a life skill, not just a nice-to-have.
It is against this backdrop that Polaris Bank is participating in this year’s Global Money Week (GMW), a global financial awareness campaign which kicked off from Tuesday, April 7 through Thursday, April 30, 2026.
Global Money Week is an annual initiative led by Child and Youth Finance International in collaboration with key stakeholders, including financial service providers and government institutions, to inspire children and young people to learn about money management, livelihoods, and entrepreneurship.
During the 2025 edition Polaris Bank reached and impacted directly 3,372 students, across 35 secondary schools in 36 states across Nigeria.
With the 2026 theme, “Smart Money Talks,” this year’s campaign shines a spotlight on the importance of making informed financial decisions in an increasingly digital environment. It also reinforces the value of critical thinking, emotional intelligence, and sound financial judgement in helping young people navigate today’s financial realities.
For Polaris Bank, participation in Global Money Week goes beyond fulfilling a statutory obligation. It reflects the Bank’s broader commitment to advancing financial literacy, promoting inclusion, and empowering the next generation with practical knowledge that can shape better financial behaviour and long-term economic wellbeing.
In line with the directive of the Central Bank of Nigeria (CBN) through the Financial Literacy Secretariat, Polaris Bank will conduct Financial Literacy Sessions in schools across states where it maintains branch presence. These sessions will provide students and young adults with useful insights into key areas such as; saving, budgeting, responsible use of financial products, digital financial services, and entrepreneurship.
The initiative also presents an important opportunity for the Bank to engage directly with young people at a formative stage in their lives, helping them build confidence in money matters and make more informed choices as they grow into financially active adults.
At a time when financial decisions are increasingly shaped by technology, peer influence, and instant access to digital tools, Polaris Bank believes that early education is critical to helping young people distinguish between impulse and intention, trend and truth, convenience and responsibility.
By taking financial literacy conversations into schools, the Bank is not only supporting a national mandate but also contributing to the development of a generation that is better informed, more financially aware, and more capable of making smart choices for the future.
Polaris Bank remains committed to initiatives that create meaningful impact, strengthen communities, and empower individuals through knowledge-driven engagement.
Central Bank of Nigeria (CBN) is implementing stricter Bank Verification Number (BVN) regulations, including limiting phone number changes to only once in a lifetime.
This will take effect from May 1.
Also, mobile apps will be restricted to one device, a 24-hour temporary watch-list for suspicious transactions will be enforced, and enrollment is restricted to individuals aged 18 and above.
Other key changes are:
One Device Policy: Mobile banking apps will be restricted to one device, with automatic logout when accessing another device.
Fraud Watchlist: BVNs linked to suspicious activity will be placed on a 24-hour, temporary, or permanent blacklist, temporarily freezing accounts.
Age Restriction: Enrollment for BVN is now restricted to individuals aged 18 and above.
Data Correction: Changes to BVN profile details (Name, DOB) are also heavily restricted, allowing only one-time corrections to data.
Paga Group has announced a major leadership restructuring, marking 17 years of operation and signalling a strategic shift toward deeper financial infrastructure development, emerging technologies, and expansion across Africa.
Tayo Oviosu, founder (front) and Ope Oyinloye, Group COO and CEO of Paga Nigeria
With the restructuring, Tayo Oviosu, founder, is now the Group CEO, while Ope Oyinloye has been appointed Group COO and CEO of Paga Nigeria, in an acting capacity, pending regulatory approval from the Central Bank of Nigeria (CBN).
Oviosu will also serve as executive chairman of the Group Board and non-executive chairman of Paga Nigeria.
He will be leading Paga Labs, driving geographic expansion, and overseeing fundraising efforts.
The fintech company said the changes represent a transition from its foundational phase into a new growth chapter, known as ‘Act 2’, focused on connecting Africans to global financial systems, scaling innovation, and entering new markets.
To support this transition, the company announced key leadership changes. advertisement
Jay Alabraba, co-founder, has been appointed group director of Special Projects, where he will initially lead the company’s expansion into lending and support new market entry initiatives.
Speaking on the transition, Oviosu said the company’s mission remains unchanged but its approach continues to evolve.
“Act 1 proved that we could build a profitable, high-growth infrastructure business that the world’s leading companies trust. Act 2 is about taking that infrastructure to its full potential—connecting Africans to global financial rails, moving into new markets, and leading the next wave of financial technology,” he said.
Oyinloye added that his focus will be on sustaining operational excellence while scaling the company’s next phase of growth.
With the new structure in place, Paga is positioning itself to play a more significant role in shaping the future of financial services across Africa, particularly as digital payments, blockchain technologies, and AI-driven solutions gain traction across the continent.
Paga has since evolved into a full-stack financial services infrastructure provider. Its offerings now span enterprise solutions through Paga Engine, consumer services via the Paga app, and merchant tools under Doroki.
The company’s first phase delivered significant growth. Between 2021 and 2025, total transaction value processed increased 17-fold to $11 billion across 169 million transactions in 2025 alone, with more than $1.5 billion processed monthly.
Net revenues grew five times within the same period, underscoring the scalability of its model.
Paga also expanded its enterprise footprint, with over 265 clients which include global firms such as PayPal, Meta, Amazon, LemFi, Tencent, Pesa, and Verto building on its infrastructure.
The company was further recognised by the Financial Times and Statista as one of Africa’s fastest-growing companies for three consecutive years from 2023 to 2025.
As part of its new strategic direction, Paga outlined three priorities which are strengthening its financial infrastructure to connect local and global payment systems; advancing emerging technologies such as stablecoins, cryptocurrency, and artificial intelligence through its innovation arm, Paga Labs; and expanding into new African markets.
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