Central Bank Reveals Deadlines, Guidelines for New Bank Recapitalisation
The Central Bank of Nigeria (CBN) has announced an increment in the minimum capital requirements for banks.
The apex bank also announced deadlines and guidelines for the new policy.
This was revealed in a circular titled REVIEW OF MINIMUM CAPITAL REQUIREMENTS FOR COMMERCIAL, MERCHANT AND NON-INTEREST BANKS IN NIGERIA
This was released on Thursday on its official X handle, as signed by Haruna B Mustafa, its Director, Financial Policy and Regulation Department.
According to the document, bank per following category would have to scale up their capital base: International – N500bn, National – N200bn, Merchant – N50bn, Regional (National) – N50bn, Regional (Non-Interest) – N20bn, Non-Interest (National) – N10bn, Non-Interest (Regional) – N1bn.
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It also added that banks have 24 months to comply, with options including equity injections and license upgrades while promoters of new banks to must meet the new requirements.
The circular states that existing banks must submit an implementation plan by April 30, 2024 and compliance will be monitored by the apex bank.
The circular states that, “To meet the minimum capital requirements, banks may consider any of the following options:
1. Inject fresh equity capital through private placements, rights issue and/or offer for subscription:
2. Mergers and Acquisitions (M&As); and/or
3. Upgrade or downgrade of license authorization.”
According to the bank, the prevailing macroeconomic challenges and headwinds occasioned by external and domestic shock have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency and capacity to continue to support the growth of the economy.
See full circular:
