The Association of Corporate and Marketing Communication Professionals of Banks (ACAMB) has expressed confidence in the capacity of Nigerian banks to meet the demands of the recently announced recapitalisation exercise of the Central Bank of Nigeria.
The CBN had 29 March announced an upward review of the minimum capital requirement for banks, specifying that commercial banks with international licenses must maintain a capital base of N500 billion while their national and regional counterparts are required to have capital bases of N200 billion and N50 billion, respectively.
In a statement released by ACAMB President, Rasheed Bolarinwa, the association welcomed the CBN’s decision on the review of minimum capital requirements for commercial, merchant, and non-interest banks over the next 24 months.
ACAMB reiterated its support for the recapitalisation exercise, emphasising the importance of Nigerian banks standing ready to play crucial roles in financial intermediation.
|
---|
The statement noted that while Nigerian banks are globally recognised as safe, resilient, and thriving, there is always room for growth, especially as Nigeria seeks to unlock its potential as a global emerging economy.
It said the recent CBN circular has clarified all anxieties about the intention, process, and possible outcomes of the recapitalisation exercise. ACAMB highlighted the overarching theme of the circular, which aims to lead banks to strengthen their capacities to meet competitive domestic and global financial needs.
It commended the thoughtfulness of the CBN in designing the modalities for the recapitalisation, highlighting the distinctive definition of the new minimum capital base for each category of banks.
“We commend the CBN for the thoughtfulness it has put into the announced modality for the recapitalisation. ACAMB particularly note the distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds,” it said.
“We urge the public to take note of this change. As it stands, banks are on the same page and as such, there is no need whatsoever for any fear, as the banks have the capacity to meet the recapitalisation in line with allowable options stipulated by the apex bank.
“All facts point to a win-win for the Nigerian banks, the financial market and the economy under this recapitalisation.”
The Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks, the statement said, adding that the extended timeline till 2026 provides ample opportunity for each bank to follow through with its recapitalisation plan, without undue crowding effect.
“With their background of good returns and liquidity, banking stocks are toasts of domestic and foreign investors. This pedigree, coupled with resilient performance of banks despite economic challenges, will come to the fore as investors know recapitalisation means stronger banks and better returns.
“The banking industry will continue to work with financial authorities to build up the economy. This recapitalisation will put Nigerian banks in better stead to support the strengthening of the economy; the expansion of the real sector, and the building of bigger banking brands that can compete continentally and globally.”
Support PREMIUM TIMES' journalism of integrity and credibility
At Premium Times, we firmly believe in the importance of high-quality journalism. Recognizing that not everyone can afford costly news subscriptions, we are dedicated to delivering meticulously researched, fact-checked news that remains freely accessible to all.
Whether you turn to Premium Times for daily updates, in-depth investigations into pressing national issues, or entertaining trending stories, we value your readership.
It’s essential to acknowledge that news production incurs expenses, and we take pride in never placing our stories behind a prohibitive paywall.
Would you consider supporting us with a modest contribution on a monthly basis to help maintain our commitment to free, accessible news?
Make ContributionTEXT AD: Call Willie - +2348098788999