The Nigeria Deposit Insurance Corporation (NDIC) has expressed support for the Federal Government’s initiative to recapitalize banks, News About Nigeria reports.
The Managing Director of NDIC, Mr. Bello Hassan, conveyed this endorsement during the annual workshop organized by the corporation for Business Editors and Finance Correspondents.
He emphasized that for the country to achieve the vision of a $1 trillion economy, it is essential to have larger banks.
While acknowledging the strength of the banking industry in terms of Capital Adequacy, Liquidity, Earnings, and Quality of Assets, Hassan highlighted the challenge of reaching a $1 trillion economy without the presence of larger banks.
He further explained that the recapitalization of banks would contribute to the growth of the nation’s Gross Domestic Product (GDP).
He emphasized that the Central Bank of Nigeria (CBN) is urging banks to recapitalize with the aim of enhancing their capital.
Recall that the CBN had announced plans to implement a new round of banking recapitalization for Deposit Money Banks (DMBs).
During the 58th Annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, CBN Governor Mr. Olayemi Cardoso disclosed this information.
Cardoso revealed that recapitalized banks would be required to raise additional capital to meet the demands of Nigeria’s economy.
He also shared that the journey toward achieving a $1 trillion economy under the Tinubu-led administration has commenced through fiscal reforms, including the removal of petrol subsidies and the unification of the foreign exchange market rate.”
