The Association of Corporate & Marketing Communication Professionals of Banks (ACAMB) has said that commercial banks across the country have the capabilities to meet the recent recapitalization directives of the Central Bank of Nigeria (CBN).
This was revealed in a statement signed and released by Rasheed Bolarinwa, the President of ACAMB.
Recall that the Olayemi Cardoso-led apex bank had last week issued and released a circular on the review of minimum capital requirements for commercial, merchant and non-interest banks over the next 24 months.
The statement reads, “This support underlines ACAMB’s belief 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, banks must also stand ready to play their crucial roles of financial intermediation.
“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.
“This overarching theme that runs through the circular and its explanatory notes further affirms the soundness of the banking sector, in line with several rating reports on Nigerian banks by leading local and international rating Agencies.”
Bolarinwa said ACAMB has always supported the CBN’s recapitalisation moves. He commended the CBN’s clear modality for the recapitalization that allows the addition of share capital and premium as against the previous regime of shareholders’ funds. He reiterated the capacity of the various banks to meet the recapitalization directive within the stipulated timeframe.
He said, “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.
“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 can meet the recapitalisation in line with allowable options stipulated by the apex bank. All facts point to a win-win for the Nigerian banks, the financial market and the economy under this recapitalisation.
“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 with its recapitalisation plan, without undue crowding effect.
“With their background of good returns and liquidity, banking stocks are toasts of domestic and foreign investors. This pedigree, coupled with resilient performance of banks despite economic challenges, will come to the fore as investors know the recapitalisation means stronger banks and better returns.”
Bolarinwa further assured that the CBN’s recapitalization drive will strengthen the economy and strategically position Nigerian banks as worthy continental and global competitors. He pledged the support and cooperation of banks in the implementation of the recapitalization programme.