The Central Bank of Nigeria (CBN) has given three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy ratio of 10 per cent.
According to a Reuters report which quoted the apex bank at the weekend, the three banks were not named but they were said to be among the group of 14 in Nigeria that have licenses to operate as regional and national lenders, with respective capital bases of N10 billion ($50 million) and N25 billion.
The report also quoted the CBN as saying that it was monitoring the three lenders' recapitalisation plans, and that 10 others with international status met the 15 per cent minimum capital rate for that category of bank at the end of June. The recapitalisation schedule, contained in a report dated Oct. 30, only came to light on Friday.
A number of banks had had to suspend moves to raise fresh funds as a result of the volatility in the capital market and unfavourable operating climate. Nigerian lenders have been shoring up their balance sheets in preparation for adopting stricter international requirements that analysts say could erode capital ratios by between 100 and 400 basis points to near the regulatory minimum of 15 per cent.
Credits: THISDAY
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