14 Banks Cross Recapitalisation Hurdle – CBN

With astir six months to the deadline for banks successful Nigeria to conscionable up with the caller superior requirement, the politician of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has confirmed that astir 14 banks person scaled the hurdle, up from the 8 that met the extremity arsenic astatine July.

Speaking astatine the extremity of the 302nd Monetary Policy Committee (MPC) meeting, Cardoso affirmed that the Nigerian fiscal assemblage has continued to beryllium resilient arsenic determination has been important advancement successful the recapitalisation process.

The CBN politician noted that “on the fiscal sector, the MPC noted the continued resilience of the banking strategy with astir of the fiscal soundness indicators remaining wrong projected benchmarks.

“Members besides admit the important advancement successful the ongoing slope recapitalization exercise, arsenic 14 banks person afloat met the caller superior requirement. They, therefore, impulse the slope to proceed the implementation of policies and initiatives that volition guarantee the palmy completion of the ongoing recapitalization exercise.”

Acknowledging the palmy termination of forbearance measures and waivers connected azygous obligors by banks, Cardoso said the determination had helped to beforehand transparency, hazard management, and semipermanent fiscal stableness successful the banking system.

He reassured that the interaction of the removal of forbearance is transitory posed nary hazard to the soundness oregon stableness of the banking system.

Recall that astatine the past MPC gathering successful July, Cardoso had mentioned that 8 banks had met the caller superior base.

Recently, LEADERSHIP had reported that 12 banks had achieved the caller the superior 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 person crossed the decorativeness line.

The apex bank, successful its March 2024 directive, raised the minimum paid-up superior for planetary banks to N500 billion, nationalist banks to N200 billion, and determination banks to N50 billion. Non-interest banks are to conscionable N20 cardinal and N10 cardinal benchmarks depending connected authorisation. The caller rules exclude retained earnings, compelling lenders to rise caller equity, restructure, oregon merge.