ACAMB Sees  Recapitalisation as Win-win for Banks, Economy

The Association of Corporate & Marketing Communication Professionals of Banks(ACAMB) says the new recapitalisation requirements of the Central Bank of Nigeria, is a win-win for the Nigerian banks, the financial market and the economy. 

ACAMB President, Rasheed, who stated this, said that the Association welcomes the CBN’s new capital requirements, and urged banks to work aggressively towards meeting the new capital requirements. 

“As Nigeria seeks to aggressively unlock its innate potential to become a global emerging economy, banks must also stand ready to play their crucial role of financial intermediation.
“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 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 said. 

Highlighting the role of the capital market in the new recapitalisation process, the ACAMB boss added, “The Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks. The extended timeline until 2026 provides ample opportunity for each bank to follow through on its recapitalisation plan without undue crowding effect.”
To, the CBN gave the sector three options, including the issuance of new common shares (by way of public offer, rights issues, or private placements); mergers and acquisitions and upgrade/downgrade of their respective license category or authorisation.
Bolarinwa maintained that the banking industry would 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. Banks will continue to cooperate with the CBN in the implementation of the recapitalisation programme,” he said.