The Association of Corporate and Marketing Communication Professionals of Banks (ACAMB) has reassured members of the public that Nigerian banks have the capability to meet the recent directives issued by the Central Bank of Nigeria (CBN) regarding the recapitalization of the banking sector.
In a statement issued by President of the association, Rasheed Bolarinwa, the group expressed full support for the CBN’s efforts to strengthen the Nigerian banking industry.
In a recent circular issued by the Governor of CBN, Olayemi Cardoso, the apex bank outlined the review of minimum capital requirements for commercial, merchant and non-interest banks over the next 24 months, maintaining that it was necessary for the banks to raise their capitalization level.
Bolarinwa stressed that Nigerian banks are already recognized globally as safe, resilient and successful, but noted, however, that there is always room for growth and improvement.
“As Nigeria aims to enhance its position as a global emerging economy, banks must be prepared to meet the evolving financial needs both domestically and internationally,” he said.
The ACAMB president commended the CBN for the clear guidelines provided for the recapitalization process, which now includes the addition of share capital and premium, as opposed to the previous requirement of shareholders’ funds and assured that banks have the capacity to meet the recapitalization directive within the specified time line.
The recapitalization initiative is seen as a positive step towards strengthening the banking sector and positioning Nigerian banks as strong competitors on the continental and global stage.
ACAMB pledged its support and cooperation in the implementation of the recapitalization programme, emphasizing the importance of building a robust economy and expanding the real sector.
As the recapitalization progresses, ACAMB said it will engage stakeholders to ensure a balanced and accurate representation of the process and encouraged depositors and shareholders to continue their business with Nigerian banks without any concerns.
Overall, the recapitalization directive is viewed as a win-win situation for Nigerian banks, the financial market, and the economy.
With the support of the CBN and the commitment of banks, the recapitalization process is expected to lead to stronger banks, better returns and a more competitive banking industry.
