10 Things To Know About New Capital Requirements For Banks By CBN  

It’s no longer news that the Central Bank of Nigeria (CBN), on Thursday evening, unveiled new minimum capital requirements for banks in order to strengthen the nation’s financial system.

The apex bank pegged the minimum capital base for commercial banks with international authorisation at N500 billion.

The central bank, in a statement signed by its Spokesperson, Mrs Hakam Sidi Ali, said the new minimum capital base for commercial banks with national authorisation is now N200billion, while the new requirement for those with regional authorisation is N50billion.

The acting director, corporate communications department of the CBN, in the statement also disclosed that the new minimum capital for merchant banks would be N50billion, while the new requirements for non-interest banks with national and regional authorisations are N20billion and N10billion, respectively.

Hereunder are 10 facts you need to know about the new development spearheaded by the regulatory bank:

1. International banks are to have N500 billion capital base, National Banks are to have N200 billion capital base, regional banks are to have N50 billion minimum capital base.

2. Merchant banks are to have N50 billion capital base.

3. National non-interest banks are to have N20 billion while regional are to have N10 billion capital base.

4. The new capital base requirement is not based on shareholders’ fund and additional Tier 1 capital is not eligible for meeting the requirement.

5. Banks have up till March 31, 2026 (24 months) to meet the new capital base benchmark.

6. Options for banks include raising new capital, mergers and reclassification, which is either a downgrade or upgrade of their licenses.

7. Presently, no bank in the country has the new capital base requirement of the CBN.

8. Banks have up till the end of next month, April 30, 2024 to come up with their recapitalisation plan.

9. Currently, Zenith Bank has the highest paid-up capital and share premium of N270.745 billion.

10. Banks that breach the Capital Adequacy Requirement will be required to inject fresh capital.