The Next Edition
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate
No Result
View All Result
The Next Edition
No Result
View All Result
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate
Home Featured

CBN Plans New Round Of recapitalisation For Banks

The Next Edition by The Next Edition
November 25, 2023
in Featured
CBN Plans New Round Of recapitalisation For Banks
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

The Central Bank of Nigeria (CBN) says it is planning to implement a new round of banking recapitalisation for the Deposit Money Banks (DMBs).

Mr. Olayemi Cardoso, the CBN Governor, announced this at the 58th Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) on Friday night in Lagos.

You might also like

Lagos Airport Drama: Air Peace, Oshiomhole In War Of Words

Breaking: Air India Flight Carrying Over 200 Passengers Crashes

WED 2025: Experts Advocate Commercial Plastic Recycling, Tree Planting

The planned recapitalisation means that DMBs will be required to raise additional capital to meet the demands of Nigeria’s economy.

Cardoso noted that President Bola Ahmed Tinubu in his Policy Advisory Council report on the national economy, had set an ambitious goal of achieving a Gross Domestic Product (GDP) of one trillion dollars by 2030, with clearly defined priority areas and strategies.

According to him, it is important that banks have a role to play in the anticipated one trillion dollars economy by 2030.

Cardoso said going by the huge developmental role the apex bank would want the banks to play in the next seven years, it had become imperative to demand their recapitalisation.

To achieve the target, Cardoso said that Nigeria needed to experience a more rapid and inclusive economic expansion.

“The administration has already commenced this journey through fiscal reforms, including the removal of petrol subsidies and the unification of the foreign exchange market rate.

“Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy.

“It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability.

“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action.

“Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital,” he said.

The CBN governor also announced the approval of another round of Open Market Operations (OMOs) to mop up excess liquidity from the banking system.

OMOs are the main monetary policy instrument, through which the central bank buys or sells securities with financial institutions in the open markets, thereby influencing the amount of money in circulation and/or interest rates.

Cardoso said, “An OMO auction was recently held with a stop rate of 17.5 per cent for the one-year tenor, attracting oversubscription of N350 billion.

“Another round of OMO has been approved to further reduce excess liquidity.

“Offering N108.1 billion worth of Treasury Bills with three tenors to the investing public, which can help reduce liquidity in the banking system and support government fundraising.’’

Cardoso said the apex bank would use its monetary policy tools to keep inflation low and stable.

He said, “the Central Bank of Nigeria is committed to achieving monetary and price stability. This is not just a technical objective, but it has real-life implications for the well-being of our citizens.

“Through targeted policies, transparent market operations, and coordination between monetary and fiscal authorities, we can ensure a more stable exchange rate, control inflation, and create an enabling environment for businesses and individuals to thrive.’’

He noted that the apex bank had taken steps to improve the effectiveness of its monetary policy tools and to strengthen the transmission mechanism so that its policy decisions have a greater impact on the economy

Cardoso added that the ability of the monetary policy committee to influence the economy through its decisions had been weakened because the channels through which monetary policy was transmitted had become disrupted.

The CBN governor said the apex bank was planning to make changes to the country’s foreign exchange regulations by developing new guidelines and legislation.

He stated that banks and foreign exchange operators would be consulted before making any final decisions.(NAN)

The Next Edition

The Next Edition

Recommended For You

Oshiomhole's

Lagos Airport Drama: Air Peace, Oshiomhole In War Of Words

    Nigeria’s largest flag carrier, Air Peace, and the senator representing Edo North, Adams Oshiomhole, were yesterday locked in a war of words over an incident at...

Breaking: Air India Flight Carrying Over 200 Passengers Crashes

Breaking: Air India Flight Carrying Over 200 Passengers Crashes

An Air India aircraft carrying more than 240 people has crashed near the Sardar Vallabhbhai Patel International Airport in Ahmedabad, western India, according to the airline and local...

WED 2025: Experts Advocate Commercial Plastic Recycling, Tree Planting

WED 2025: Experts Advocate Commercial Plastic Recycling, Tree Planting

    As the world observes World Environment Day, environmentalists and corporate brands in Nigeria have called for the commercialisation of plastic recycling and the expansion of tree-planting...

Pope Leo Prays For Victims Of Austrian School Shooting

Pope Leo Prays For Victims Of Austrian School Shooting

  Pope Leo XIV said on Wednesday that he was praying for the victims of the mass shooting in a school in the Austrian city of Graz. “I...

Next Post
Black Friday: Nigerian Online Shoppers Believe Domestic Version “A Scam”

Black Friday: Nigerian Online Shoppers Believe Domestic Version “A Scam”




Related News

Defamation Of Mercy Chinwo: Court Issues Criminal Summons On Five Persons

Defamation Of Mercy Chinwo: Court Issues Criminal Summons On Five Persons

Alleged N1m theft: Air passenger caught, to be arraigned

Alleged N1m theft: Air passenger caught, to be arraigned

Ayade plans big for 2018 Carnival Calabar, unveils theme

Ayade plans big for 2018 Carnival Calabar, unveils theme




The Next Edition

Office Address

3B, Agboola Aina street, Off Toyin Street,
Ikeja, Lagos.

Quick Contact Details

Phone:
08033018430
Whatsapp:
08051679910

Email:
advert@nextedition.com.ng
vicki.ibanga@gmail.com

Categories

  • Aviation
  • Beauty
  • Breaking News
  • Business
  • Columnists
  • Editorial
  • Entertainment
  • Fashion
  • Featured
  • Football
  • Foreign
  • Headline News
  • Home & Garden
  • Interviews
  • Investigations
  • North Central
  • North East
  • North West
  • Opinion
  • Parenting
  • Politics
  • Relationships
  • South East
  • South West
  • South-South
  • Special Reports
  • Sports
  • Top News
  • Vox Pops

© Next Edition Business Development Limited

  • About Us
  • Advert Rate
  • Contact Us
  • Privacy Policy
  • Terms of Use
No Result
View All Result
  • Home
  • About Us
  • News
  • Featured
  • Investigations
  • Foreign
  • Special Reports
  • Entertainment
  • Interviews
  • Advert Rate

© Next Edition Business Development Limited