The Association of Corporate & Marketing Communication Professionals of Banks (ACAMB) has welcomed the release of the much-anticipated circular of the Central Bank of Nigeria (CBN) on the banking sector recapitalization and believes that while Nigerian banks are globally regarded as safe, resilient and thriving; there is always room for growth.
As Nigeria seeks to aggressively unlock its innate potential to become a global emerging economy, the association say banks must also stand ready to play their crucial roles of financial intermediation.
Rasheed Bolarinwa, President of ACAMB in a statement noted that the import of the recapitalisation announced is that Nigerian banks are safe and reliable but the apex bank in its developmental mandate, is leading the banks to strengthen their capacities to meet competitive domestic and global financial needs.
He recalled that at the first announcement of the planned recapitalisation by the CBN Governor, Dr. Olayemi Cardoso, ACAMB, as a key player in Nigeria’s banking sector, had, alongside other critical stakeholders, affirmed support for the recapitalisation.
“The CBN circular on review of minimum capital requirement for commercial, merchant and non-interest banks over the next 24 months has laid to rest any anxiety about the intention, process and possible outcome of the new recapitalisation exercise,” the statement added.
“ACAMB particularly note the distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds. We urge the public to take note of this change. As it stands, banks are on the same page and as such, there is no need whatsoever for any fear, as the banks have the capacity to meet the recapitalisation in line with allowable options stipulated by the apex bank.”
Describing the recapitalization as a win-win for the Nigerian banks, the financial market and the economy, Rasheed pointed out that the Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks. The extended timeline till 2026, provides ample opportunity for each bank to follow through its recapitalisation plan, without undue crowding effect.
The banking industry, ACAMB said will continue to work with financial authorities to build up the economy. “This recapitalisation will put Nigerian banks in better stead to support the strengthening of the economy; the expansion of the real sector, and the building of bigger banking brands that can compete continentally and globally.”
Mr Bolarinwa emphasised that ACAMB will be engaging all stakeholders to ensure balanced and factual representation as the recapitalisation progresses while reassuring all depositors and shareholders to keep about their businesses with the Nigerian banks without fears.
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