Rédaction Africa Links 24 with Ayodeji Adegboyega
Published on 2024-04-02 11:47:29
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.
On 29th March, the CBN 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, emphasizing the importance of Nigerian banks standing ready to play crucial roles in financial intermediation.
The statement noted that while Nigerian banks are globally recognized as safe, resilient, and thriving, there is always room for growth, especially as Nigeria seeks to unlock its potential as a global emerging economy.
ACAMB also 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. The association affirmed that banks have the capacity to meet the recapitalisation in line with allowable options stipulated by the apex bank.
The Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks. The extended timeline until 2026 provides ample opportunity for each bank to follow through with its recapitalization plan without any undue crowding effect.
The association urged the public to take note of the changes in the minimum capital requirement and assured that banks are well-positioned to meet the recapitalization requirements. The ACAMB emphasized that this recapitalization exercise will put Nigerian banks in a better position 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.
It also highlighted that banking stocks are a favorite among domestic and foreign investors due to good returns and liquidity, and the recapitalization exercise is expected to lead to stronger banks and better returns. ACAMB reiterated the willingness of the banking industry to collaborate with financial authorities in building up the economy.
Overall, the association expressed optimism about the benefits of the recapitalization exercise for Nigerian banks, the financial market, and the economy. They believe that stronger banks will contribute to the development of the economy and support the growth of Nigerian banking brands on a global scale.
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