14 banks fully met new capital requirement – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says 14 Nigerian banks person afloat met the caller superior request successful the ongoing recapitalisation exercise.

Cardoso said this connected Tuesday successful Abuja, portion presenting a communiqué from the 302nd gathering of Monetary Policy Committee (MPC) of the CBN.

The News Agency of Nigeria (NAN) reports that the CBN introduced a caller minimum superior basal request for banks, with tiers depending connected licence type.

Before then, the past large slope recapitalisation workout successful Nigeria was successful 2004, erstwhile the CBN raised the minimum superior request for each banks from 2 cardinal Naira to N25 billion.

This was a important summation that led to a large consolidation successful the banking sector, arsenic the fig of banks was reduced from 89 to 25 done a bid of mergers and acquisitions.

In the existent recapitalisation exercise, commercialized banks with planetary authorisation present person a caller superior request of N500 billion.

Commercial banks with nationalist authorisation person N200 cardinal arsenic superior requirement, and commercialized banks with determination authorisation person N50 billion.

Merchant banks person a requirementof N50 billion, non-interest banks (national) N20 cardinal and non-interest banks (regional), N10 billion.

According to Cardoso, members of the MPC acknowledged the important advancement successful the ongoing slope recapitalisation exercise, arsenic 14 banks person afloat met the caller superior requirement.

“They, therefore, urged the CBN to proceed the implementation of policies and initiatives that would guarantee the palmy completion of the ongoing recapitalisation exercise,” helium said.

He said that the committee further noted the palmy termination of forbearance measures and waivers connected azygous obligors, which has helped to beforehand transparency, hazard management, and semipermanent fiscal stableness successful the banking system.

“The MPC reassured the nationalist that the interaction of the removal of forbearance is transitory and does not airs immoderate menace to the soundness and stableness of the banking system, price, and different home developments.”

Cardoso had earlier announced the determination of the MPC to trim the Monetary Policy Rate (MPR) by 50 ground points to 27 per cent from 27.50 per cent.

The committee besides set the lasting facilities corridor astir the MPR to +250/- 250 ground points and adjusted the Cash Reserve Ratio (CRR) for commercialized banks to 45 per cent from 50 per cent.

It, however, retained the CRR for merchant banks astatine 16 per cent, portion keeping the Liquidity Ratio unchanged astatine 30 per cent.

According to the CBN governor, the committee introduced a 75 per cent CRR connected non-TSA nationalist assemblage deposits to heighten liquidity management.

He said that the committee’s determination to little the MPR was predicated connected the sustained disinflation recorded successful the past 5 months.

He said that the determination was besides informed by projections of declining ostentation for the remainder of 2025 and the request to enactment economical betterment efforts.

The station 14 banks afloat met caller superior request – Cardoso appeared archetypal connected Vanguard News.