14 Banks Fully Met New Capital Requirements – CBN

By Bukola Kayode

Governor of the Central Bank of Nigeria, CBN, Yemi Cardoso, has disclosed that 14 Nigerian banks have fully met the new capital requirement in the ongoing recapitalisation exercise.

Cardoso made the disclosure on Wednesday while presenting the communiqué from the 302nd meeting of the Monetary Policy Committee, MPC, of the CBN in Abuja.

Cardoso disclosed this while presenting a communiqué from the 302nd meeting of Monetary Policy Committee, MPC, of the CBN in Abuja yesterday.

This is even as the apex bank reduced Monetary Policy Rate, MPR, by 50 basis points from 27.5 per cent to 27 percent, just as private operators commend the action and called for more reforms to ease the cost of living for Nigerians.

Recall that the CBN introduced a new minimum capital base requirement for banks, with tiers depending on licence type. 

Cardoso also stated that members of the MPC acknowledged the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.

“They, therefore, urged the CBN to continue the implementation of policies and initiatives that would ensure the successful completion of the ongoing recapitalisation exercise,” he added.

He said the committee further noted the successful termination of forbearance measures and waivers on single obligors, which had helped to promote transparency, risk management and long-term financial stability in the banking system. 

Cardoso added:  “The MPC reassured the public that the impact of the removal of forbearance is transitory and does not pose any threat to the soundness and stability of the banking system, price, and other domestic developments.”

Speaking on the reduction of interest rate to 27%, Cardoso said the committee decided to “reduce the MPR by 50 basis points to 27%; adjust the standing facilities corridor around the MPR to +250 /- 250 basis points, adjust the Cash Reserve Requirements, CRR, for commercial banks to 45%, while retaining that of merchant banks at 16%.”

He said the CBN decided to introduce a 75% CRR on non-Treasury Single Account, TSA, public sector deposits and keep the liquidity ratio unchanged at 30 per cent.