CBN confirms that 14 banks fully meet new capital requirements

Nigerian Central Bank Governor (CBN), Yemi Cardoso, said on Tuesday that 14 banks had fully met new capital requirements in the ongoing recapitalization training.

The CBN Governor stated this when he presented the communication from the 302th meeting of the Apex Bank Monetary Policy Committee (MPC) in Abuja.

CBN has, earlier this year, introducing new minimum capital base requirements for banks, with a level depending on the type of license.

Before the latest process, the last major bank recapitalization training in Nigeria was in 2004, when CBN increased the minimum capital requirements for all banks from N2 billion to N25 billion.

This is a significant increase that causes a large consolidation in the banking sector, because the number of banks is reduced from 89 to 25 through a series of mergers and acquisitions.

In the current recapitalization exercise, commercial banks with international authorization now have new capital requirements of N500 billion.

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Commercial banks with national authorization have N200 billion as capital requirements, and N50 billion for commercial banks with regional authorization.

Traders’ banks have N50 billion requirements, non-interest (national) N20 billion, and non-interest (regional) banks, N10 billion.

According to Cardoso, MPC members acknowledged significant progress in the ongoing bank recapitalization training, because 14 banks have fully met new capital requirements.

He said: “Therefore, they urged CBN to continue the implementation of policies and initiatives that will ensure the successful completion of the ongoing recapitalization training.”

He added that the committee recorded a successful termination of the steps of patience and relief in a single obligor, which had helped promote transparency, risk management, and long-term financial stability in the banking system.

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