With about six months to the deadline for banks in Nigeria to meet up with 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 at 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 as there has been significant progress in the recapitalisation process.
The CBN governor noted that “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 recapitalization 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 recapitalization 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 reassured that the impact of the removal of forbearance is transitory posed no risk to the soundness or stability of the banking system.
Recall that 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 achieved the new the capital base.
According to LEADERSHIP findings, 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.
The apex bank, in its March 2024 directive, raised the minimum paid-up capital for international banks to N500 billion, national banks to N200 billion, and regional banks to N50 billion. Non-interest banks are to meet N20 billion and N10 billion benchmarks depending on authorisation. The new rules exclude retained earnings, compelling lenders to raise fresh equity, restructure, or merge.
