16 banks have met CBN’s capital requirements - Cardoso

The Central Bank of Nigeria (CBN) says 16 banks have fullymet the regulatory capital requirements. Olayemi Cardoso, the CBN governor, spoke on Tuesday during apress conference held after the 303rd monetary policy committee (MPC) meetingin Abuja. He said the MPC expressed satisfaction with the sustainedresilience of the banking system, with most financial soundness indicatorsremaining within regulatory thresholds. “Members also acknowledged the substantial progress in theongoing recapitalisation program, with 16 banks achieving full compliance withrevised capital requirements,” Cardoso said. He said the committee therefore urged the CBN to ensure asuccessful implementation and conclusion of the programme. Speaking further, Cardoso said the banks are currentlyworking to strengthen their financial buffers. He explained that this is the intended outcome of theongoing recapitalisation process, noting that 27 banks have raised capital sofar. “16 of them have fully complied. 27 of them have, throughvarious means, raised capital,” Cardoso said. “We are monitoring the developments and from everyindication, it is going in the right trajectory.” According to the governor, the country is now focused ondeveloping a financial sector that is fit for purpose — one capable of buildingstrong buffers and supporting the nation effectively in the years ahead. “Many of you will also know that many of our banks are outon the African continent, and they have been innovative in various fairs,” hesaid. “Again, these buffers that they are creating will help themto be in a position to better navigate the risks in the multiplicity ofcountries in which they operate. “In return, that helps the Nigerians as well — the Nigeriantraders, the Nigerian individuals —who go across all these variousgeographies.” On March 28, 2024, CBN announced an increase in the minimumcapital requirements for commercial banks with international licences to N500billion. Following the development, several banks announced plans toraise funds through share, bond issuances. In January, Zenith Bank said it had raised N350.46 billionthrough rights issue and public offer to meet the CBN minimum capitalrequirement. Guaranty Trust Holding Company Plc (GTCO), on July 4, saidit had successfully priced its fully marketed offering on the London StockExchange (LSE). In September, the CBN governor said 14 banks fully met theirrecapitalisation requirements — up from eight banks in July.

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