Eight Banks Meet Recapitalisation Requirements – CBN

The Central Bank of Nigeria (CBN) says only eight banks have fully met their recapitalisation requirements.

Olayemi Cardoso, the CBN governor, spoke on Tuesday during a press conference held after the 301st monetary policy committee (MPC) meeting in Abuja.

Cardoso noted that other banks have taken steps toward complying with the deadline, adding that one bank has listed its shares on the London Stock Exchange (LSE).

“Members also noted the continued stability in the banking system evidenced by the stable financial soundness indicators (FSIs) which will further be supported by the ongoing banking recapitalisation exercise,” Cardoso said.

“The MPC noted that eight banks have fully met their recapitalisation requirements while others are making progress towards meeting the deadline.

“The committee, thus, urged the management of the bank to sustain its oversight of the banking system to ensure continued resilience, safety, and soundness of the financial system.”

While responding to questions during the press briefing, Cardoso said “we have one bank that has raised a significant amount of money on the London Stock”.

“That clearly is a reflection of the way that the international investors view the banking system,” the CBN governor said.

“I was again very privileged to have a conversation with a good number of them about three or four weeks before this listing took place and really and truly, a lot of interest internationally on putting money on the Nigerian financial system.”

He emphasised that the key point is that the CBN, as the regulator, will continue to fulfill its role in ensuring that the system, actors, and players build resilience, maintain adequate buffers, and operate within the rules.

Cardoso added that this is crucial for maintaining investor confidence in the sector.

On March 28, 2024, 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 share, bond issuances.

In January, Zenith Bank said it had 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 had successfully priced its fully marketed offering on the London Stock Exchange (LSE).