With six months to the deadline set by the banks to begin the implementation of the new capital adequacy requirements, the Central Bank of Nigeria (CBN) governor, Olayemi Cardoso, has assured that 14 banks have already reached the target, an increase from eight recorded in July.
Speaking after the 302nd Monetary Policy Committee (MPC) meeting, Cardoso observed that the banking sector has continued to remain stable as financial health indices remained within expected levels.
The MPC noted the banking system’s stability continuing with most of the indicators being strong. The members also acknowledged the significant progress in the recapitalisation process, wherein 14 banks had already met the new capital requirement. Banks are encouraged to persist in efforts towards making the process a success,” he added.
Cardoso added that phasing out forbearance measures and waivers on single obligor limits improved transparency, risk management, and long-term stability of the system. He guaranteed that the short-run impact of the policy did not involve any risk to bank soundness.
Only eight banks at the latest MPC meeting in July had met the new capital requirement, while, as recently reported, 12 had surpassed the mark. Banks that have met the requirement, investigations by LEADERSHIP revealed, include 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.
In March 2024, foreign banks were mandated to bring their minimum paid-up capital to ₦500 billion, national banks to ₦200 billion, and regional banks to ₦50 billion. Non-interest banks will be required to meet ₦20 billion or ₦10 billion targets depending on their licence. Retained earnings are excluded, so lenders raise new equity, restructure, or merge.
