Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced at the recently held Monetary Policy Committee meeting in Abuja that 14 Banks have reached the apex bank’s new capital requirements. He remarked that most financial soundness indicators are still within the bank’s acceptable limits.
The recapitalisation exercise, aimed at strengthening the financial system, applies different thresholds for each bank depending on their license. Commercial banks with international license must have a minimum of ₦500 billion capital, national license banks must have ₦200 billion capital and the regional banks are to meet the ₦50 billion limit.
According to Cardoso, banks have made tremendous strides since the policy came into play. As of July, only eight banks could reach compliance and since then, six more banks have added their name to that list and that now totals 14 banks.
In addition, he stated that the CBN has now exited forbearance and waiver provisions for civil obligors, which, according to him, is meant to enhance transparency, improve risk management and bolster long-term stability of the sector.
Banks have raised funds through rights issues, bonds, and other capital raising transaction to comply with the stringent requirements. Observers in the industry have indicated that this will not only grow investor confidence but result in stronger and more resilient banking operations.
However, some banks have not yet reached their targets and continue to struggle beneath pressure. The time limit for complete compliance is still March 2026, so there is no so much time for underperforming banks to catch up.
Cardoso noted that the CBN will continue to ensure compliance is obtained throughout the sector and that ultimately, the all-important goal is to achieve a sound and stable banking sector that is able to support the growth of the Nigeria economy.
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