‘Why recapitalisation will not guarantee efficient banking sector’

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Amid efforts to raise minimum capital in line with new regulatory thresholds, experts have insisted that building banks that are supportive

of economic growth goes beyond money.

They noted that the problem of poor asset management was a major contributor to the failure of several Silicon Valley Bank, First Republic Bank and Signature Bank last year. They categorically stated that many banks would get cut at the knees by lacking a deliberate strategy to transition from cash flow to value creation.

 

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