Banks Submitting Implementation Plans For Recapitalisation, Says CBN

…Faults Reports On Alleged Intention To Revoke More Banks’ Licenses

The Central Bank of Nigeria (CBN) has confirmed that banks have commenced submitting implementation plans for the
Banking Sector Recapitalisation
Programme incompliance with its Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).

The apex bank further, described as “false” reports suggesting that it intends to revoke the banking licenses of three additional banks, following the earlier withdrawal of Heritage Bank license.

The CBN faulted the allegation in a statement by the Ag. Director, Corporate Communications, Mrs Hakama Sidi Ali, on Tuesday.

The apex bank noted that its attention was drawn to some information circulating in
the public domain, suggesting that
it is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.

According to the statement, “The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.

The Nigerian financial system
remains safe, sound, and resilient.
Our banks have begun submitting
implementation plans for the
Banking Sector Recapitalisation
Programme incompliance with
the CBN Circular reviewing the
minimum capital requirements
for Commercial, Merchant, and
Non-Interest Banks (CMNIBs).

“These plans are currently being reviewed by the Bank. In addition to enhancing buffers to withstand economic shocks, this
proactive measure by the CBN to
require CMNIBs to recapitalize will
result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and
development of a $1 trillion Nigerian economy.

“The CBN would like to reassure all
stakeholders of its unwavering
commitment to ensuring the financial system’s stability. Our financial
system remains on a solid footing,
and the CBN will continue to take
all necessary steps to maintain its
safety and soundness.