The Association of Corporate and Marketing Communication Professionals of Banks (ACAMB) has welcomed the latest guidelines of the Central Bank of Nigeria (CBN) on the banking sector recapitalization and assured the public of the capacity of the banks to meet the required targets within the two-year timeline set by the apex bank.
The President of the association, Rasheed Bolarinwa, in a statement issued on Monday, indicated that the support underscored the group’s strong belief that while Nigerian banks are globally regarded as safe, resilient and thriving, there is always room for growth.
According to the association, 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.
Specifically, Bolarinwa expressed the group’s optimism that the CBN circular on review of minimum capital requirement for commercial, merchant and non-interest banks over the next 24 months had laid to rest any anxiety about the intention, process and possible outcome of the new recapitalisation exercise.
He stated: The import of the recapitalisation announced is that 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.
“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 useof shareholders’ funds. 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. 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”, he added.
The ACAMB President promised that the banking industry would continue to work with financial authorities to build up the economy as the latest recapitalisation requirements will put Nigerian banks in better stead to support the strengthening of the economy; the expansion of the real sector, and the building of bigger banking brands that can compete in the continent and globally.
This is even as he maintained that banks would continue to cooperate with the CBN in the implementation of the recapitalization programme and that the association shall also be engaging all stakeholders in order to ensure balanced and factual representation as the recapitalisation progresses.
The association also reassures all depositors and shareholders to keep doing their businesses with the Nigerian banks without fears given the potential benefits of the recapitalization exercise for the depositors, banks and the nation’s economy.
