The Central Bank of Nigeria (CBN) says 33 of the 37 banks covered by its new recapitalisation requirements have met the prescribed capital thresholds without receiving an extension of the regulatory deadline….
The Central Bank of Nigeria (CBN) says 33 of the 37 banks covered by its new recapitalisation requirements have met the prescribed capital thresholds without receiving an extension of the regulatory deadline.
CBN Governor Olayemi Cardoso disclosed this while briefing journalists after the 306th Monetary Policy Committee meeting in Abuja, describing the outcome as a major strengthening of the banking sector.
“Being able to recapitalise without extending deadlines, out of the 37 banks 33 were able to meet this particular threshold that we had set,” Cardoso said.
He said much of the capital raised during the exercise came from domestic sources, describing that as significant for the Nigerian financial system.
The governor said the recapitalisation exercise had considerably strengthened the industry and would enable banks to build stronger buffers and increase their capacity to support the economy.
“I think the recapitalisation exercise has been a successful one and I can say to Nigerians that our industry has been considerably strengthened,” he said.
Cardoso said the remaining banks that had not yet met the requirement were under CBN supervision, with different options being considered to bring them up to the required level.
“As far as we are concerned they’re on track,” he said.
“There are different alternatives that are being looked at to ensure that they get up to the same level as the other banks have done as at this point in time.”
He also assured customers that the affected banks remained under regulatory guidance and could continue normal operations.
“You can go on with your normal business and those banks are under our guidance,” Cardoso said.
The CBN’s new minimum capital requirements were introduced as part of efforts to strengthen banks against financial shocks and increase their capacity to support economic growth. The regulator set minimum capital requirements of ₦500 billion for commercial banks with international authorisation, ₦200 billion for those with national authorisation and ₦50 billion for regional banks.
Cardoso said the regulator would continue to monitor the industry closely to prevent a return to boom-and-bust cycles and ensure that depositors’ funds remain protected.
“The important thing for us is to ensure that we can at all times support and protect depositors’ money,” he said.
