Dr Wale Adegbite, a former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, has described the planned recapitalisation of banks by the Central Bank of Nigeria (CBN) as commendable.
Adegbite said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Ota, Ogun, that the move would strengthen the banks.
It would be recalled that the CBN in a statement signed by it’s acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, recently announced plans to recapitalise banks in the country.
In the plan, the apex bank increased the minimum capital base for commercial banks holding national authorisation to N200 billion, and N50 billion for those with regional authorisation.
The CBN also pegged the minimum capital requirement for merchant banks at N50 billion.
Non-interest banks holding national and regional authorisations would now have new minimum requirements of N20 billion and N10 billion, respectively.
According Adegbite, CBN’s decision to further recapitalise banks after 20 years is a welcome development and a good omen to the economy.
”This is a welcome development, the move will help to strengthen the financial system.
”With fall in the value of Naira, there is need to set a higher minimum capital for banks, this will improve their capacity to support the economy,” he said.
Accordding to analysts, recapitalisation is a CBN regulatory initiative that requires banks to increase their minimum paid-in common equity capital in line with their license category and authorisation.(NAN)
By Ige Adekunle
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