The Association of Corporate & Marketing Communication Professionals of Banks (ACAMB) has expressed confidence in Nigerian banks’ ability to fulfill the new recapitalization criteria set by the Central Bank of Nigeria (CBN).
In a statement released on Monday, the association emphasized the safety and stability of the banking sector while acknowledging the need for continuous improvement.
ACAMB welcomed the CBN’s updated capital requirements, which were outlined in a recent circular to banks. The directive mandates commercial banks with international authorization to raise their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion. Non-interest banks with national and regional authorizations are also required to increase their capital to N20 billion and N10 billion, respectively.
Rasheed Bolarinwa, President of ACAMB, emphasized that the new recapitalization exercise underscores Nigeria’s commitment to becoming a global economic powerhouse. He praised the CBN for its thoughtful approach to the process and the clarity provided regarding the minimum capital base for each category of banks.
Bolarinwa assured the public that Nigerian banks have the capacity to meet the recapitalization requirements within the stipulated timeline. He highlighted the role of the capital market in supporting banks’ efforts to raise capital and stressed the importance of collaboration between banks and financial authorities in driving economic growth.
To comply with the new capital requirements, the CBN has outlined three options for banks: issuing new common shares, engaging in mergers and acquisitions, or upgrading/downgrading their license category or authorization.
Bolarinwa concluded by affirming the banking industry’s commitment to supporting economic development and reiterated banks’ cooperation with the CBN in implementing the recapitalization program.
