The Securities and Exchange Commission has released a framework to support the Central Bank of Nigeria’s plan to strengthen the country’s banking sector.
The CBN had, on March 29, 2024, mandated an increase in the capital base for Deposit Money Banks to improve productivity, setting new minimum capital requirements with international banks required to raise their capital base to N500 billion, N200 billion for national banks, and N50 billion for regional banks.
The SEC said, “Following prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks, the Central Bank of Nigeria has mandated a recapitalisation programme for banks to strengthen their asset base and support economic growth in line with the Federal Government’s target of achieving a $1 trillion economy by 2030.
“This framework outlines the guidelines and procedures banks are required to follow to raise capital through rights issuance, private placements, or other approved methods during the 2024-2026 recapitalisation period.”
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Source: GuardianNigeria - 🏆 1. / 94 Read more »