ACAMB welcomed the CBN's circular on the review of minimum capital requirements for commercial, merchant, and non-interest banks over the next 24 months
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The CBN had 29 March announced an upward review of the minimum capital requirement for banks, specifying that commercial banks with international licenses must maintain a capital base of N500 billion while their national and regional counterparts are required to have capital bases of N200 billion and N50 billion, respectively.
The statement noted that while Nigerian banks are globally recognised as safe, resilient, and thriving, there is always room for growth, especially as Nigeria seeks to unlock its potential as a global emerging economy. “We commend the CBN for the thoughtfulness it has put into the announced modality for the recapitalisation. 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,” it said.
The Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks, the statement said, adding that the extended timeline till 2026 provides ample opportunity for each bank to follow through with its recapitalisation plan, without undue crowding effect.
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