As the Central Bank of Nigeria (CBN) deadline approaches, many deposit money banks (DMBs) are experiencing recapitalization fever, which has led to a flurry of activity, according to Daily Trust.
Additionally, it was discovered that a number of DMBs, particularly tier two banks, are thinking about a number of options, including but not limited to merging.
At last week’s Monetary Policy Committee (MPC) meeting, CBN Governor Olayemi Cardoso affirmed that eight banks had achieved recapitalization.He added that one bank had listed its shares on the London Stock Exchange (LSE) and that other institutions had taken action to meet the deadline.Cardoso added, “The ongoing banking recapitalization exercise will further support the stable financial soundness indicators (FSIs), which further demonstrate the banking system’s ongoing stability.”
Eight banks have fully complied with their recapitalization obligations, according to the MPC, while other institutions are moving closer to the deadline.
In order to maintain the financial system’s resilience, safety, and soundness, the committee therefore recommended the bank’s management to continue supervising the banking system.
About The Author
