N500bn new capital base: Banks ‘ll meet recapitalisation deadline – ACAMB

COMFORT EKELEME

The Association of Corporate & Marketing Communication Professionals of Banks (ACAMB) has assured of all banks’ capacity to meet the new recapitalisation requirement by the Central Bank of Nigeria (CBN).

A statement e-signed by Rasheed Bolarinwa, , ACAMB President indicated that the banks supports the recapitalisation process because Nigerian banks are globally regarded as safe, resilient and thriving this, there is always room for growth.

According to ACAMB, “Nigerian banks are safe and reliable but the apex bank in its developmental mandate, is leading the banks to strengthen their capacities to meet competitive domestic and global financial needs.

The statement further indicated that “as Nigeria seeks to aggressively unlock its innate potential to become a global emerging economy, banks must also stand ready to play their crucial roles of financial intermediation.

“This overarching theme that runs through the circular and its explanatory notes further affirms the soundness of the banking sector, in line with several rating reports on Nigerian banks by leading local and international rating Agencies.

“We commend the CBN for the thoughtfulness it has put into the announced modality for the recapitalisation. ACAMB particularly note the distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds” it said.”

“We urge the public to take note of this change. As it stands, banks are on the same page and as such, there is no need whatsoever for any fear, as the banks have the capacity to meet the recapitalisation in line with allowable options stipulated by the apex bank,” ACAMB said.

Speaking further, the association noted that “All facts point to a win-win for the Nigerian banks, the financial market and the economy under this recapitalisation.

“The Nigerian capital market, where banks are the most influential group, has the depth to meet the capital requirements of banks. The extended timeline till 2026, provides ample opportunity for each bank to follow through its recapitalisation plan, without undue crowding effect.

“With their background of good returns and liquidity, banking stocks are toasts of domestic and foreign investors. This pedigree, coupled with resilient performance of banks despite economic challenges, will come to the fore as investors know the recapitalisation means stronger banks and better returns” the statement further indicated.

The statement however, noted that ACAMB shall also be engaging all stakeholders in order to ensure balanced and factual representation as the recapitalisation progresses.

ACAMB reassures all depositors and shareholders to keep about their businesses with the Nigerian banks without fears” the statement assured.