CBN considers new round of bank recapitalization
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The Central Bank of Nigeria (CBN) has announced a new bank recapitalization plan for the Deposit Money Bank (DMB).
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, made this announcement at the 58th Annual Bankers Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos on Friday night.
As a result of the planned recapitalization, DMB will need to raise additional capital to meet the demands of the Nigerian economy.
Cardoso, in the report of the Policy Advisory Committee on the National Economy, said President Bola Ahmed Tinubu has clearly defined priority areas and strategies to achieve a GDP of $1 trillion by 2030. He said he has set an ambitious goal to do so.
He said it’s important for banks to be involved in the $1 trillion economy expected by 2030.
Mr. Cardoso said the call for recapitalization has become important given the important developmental role the central bank wants each bank to play over the next seven years.
Cardoso said that to achieve the goal, Nigeria needs to experience faster and more inclusive economic growth.
“The administration has already begun this effort through fiscal reforms, including eliminating gasoline subsidies and harmonizing foreign exchange market rates.
“Given our policy imperatives and projected economic growth, it is critical for us to assess the suitability of the banking industry to serve the anticipated larger economy,” he said.
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Source: dailypost.ng