14 Banks Have Cleared Recapitalisation Hurdle – Cardoso

With about six months to the deadline for banks in Nigeria to meet the new capital requirement, the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has confirmed that about 14 banks have scaled the hurdle, up from the eight that met the goal as of July.

Speaking at the end of the 302nd Monetary Policy Committee (MPC) meeting, Cardoso affirmed that the Nigerian financial sector has continued to be resilient, with significant progress in the recapitalisation process.

The CBN governor said: “On the financial sector, the MPC noted the continued resilience of the banking system with most of the financial soundness indicators remaining within projected benchmarks.

“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement. They therefore urge the bank to continue the implementation of policies and initiatives that will ensure the successful completion of the ongoing recapitalisation exercise.”

Acknowledging the successful termination of forbearance measures and waivers on single obligors by banks, Cardoso said the move had helped to promote transparency, risk management, and long-term financial stability in the banking system.

He assured that the impact of the removal of forbearance was transitory and posed no risk to the soundness or stability of the banking system.

At the last MPC meeting in July, Cardoso had mentioned that eight banks had met the new capital base.

Recently, LEADERSHIP had reported that 12 banks had met the capital base.

LEADERSHIP’s findings showed that Access Holdings, Zenith Bank, GTBank, Ecobank, Stanbic IBTC, Wema Bank, Providus Bank, Jaiz Bank, Lotus Bank, Greenwich Merchant Bank, Premium Trust Bank, and Globus Bank have crossed the finish line.

In its March 2024 directive, the apex bank raised the minimum paid-up capital for international banks to ₦500 billion, national banks to ₦200 billion, and regional banks to ₦50 billion.

Depending on authorisation, non-interest banks are to meet ₦20 billion and ₦10 billion benchmarks. The new rules exclude retained earnings, compelling lenders to raise fresh equity, restructure, or merge.