Recapitalisation: 14 banks meet requirement 6 months to deadline

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has stated that about 14 banks have met the regulatory capital requirements as set by the apex Bank. Cardoso made the disclosure during a press conference on Tuesday in Abuja, while announcing the decisions of the CBN’s monetary policy committee (MPC). “On the financial […]

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has stated that about 14 banks have met the regulatory capital requirements as set by the apex Bank.

Cardoso made the disclosure during a press conference on Tuesday in Abuja, while announcing the decisions of the CBN’s monetary policy committee (MPC).

“On the financial sector, the MPC noted the continued resilience of the banking system with most of the financial soundness indicators remaining within projected benchmarks,” he said.

“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.

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“They therefore urge the bank to continue the implementation of policies and initiatives that will ensure the successful completion of the ongoing recapitalisation exercise.”

The CBN governor said the committee also acknowledged the successful termination of forbearance measures and waivers on civil obligors, which have helped to promote transparency, risk management, and long-term financial stability in the banking system.

He added that the MPC reassured the public that the impact of the removal of forbearance is transitory and poses no risk to the soundness or stability of the banking system.

Daily Trust reports that on March 28, 2024, the CBN announced an increase in the minimum capital requirements for commercial banks with international licences to N500 billion.

Following the development, several banks announced plans to raise funds through various means — including shares and bond issuances.

In January, Zenith Bank said it raised N350.46 billion through rights issue and public offer to meet the CBN minimum capital requirement.

Guaranty Trust Holding Company Plc (GTCO), on July 4, said it successfully priced its fully marketed offering on the London Stock Exchange (LSE).

22 banks in race for recapitalisation

On July 22, the CBN said only eight banks had fully met their recapitalisation requirements. The implication is that

The deadline for the recapitalisation as set by the CBN is 31st March 2026.

There are 36 deposit money banks as of April 26, 2024. They included seven with international authorisation. They are Access Bank Limited, Fidelity Bank, First City Monument Bank Limited, FirstBank Nigeria Limited, Guaranty Trust Bank Limited, United Bank for Africa and Zenith Bank PLC.

 

 

 

Those holding commercial banking license with international authorisation are Citibank Nigeria Limited, Ecobank Nigeria Limited, Heritage Bank, Globus Bank, Keystone, Polaris, Stanbic IBTC Bank, Standard Chartered Bank, Sterling Bank, Titan Trust Bank, Union Bank, Unity Bank, Wema Bank, Premium Trust Bank and Optimus Bank.

 

 

 

Commercial Banks with Regional Authorisation are Providus Bank, Parallex Bank, SunTrust Bank and Signature Bank.

 

 

 

For the non-interest banks, there are Jaiz Bank, Taj Bank, Lotus Bank and Alternative Bank Limited.

 

 

The banks that have met the minimum capital requirements are Access Bank, Zenith Bank, Standard Bank, WEMA Bank, Providus, Greenwich Merchant Bank, Jaiz Bank, Globus Bank, among others.