A new report from Ernst and Young estimates that 17 out of 24 banks might not meet the capital requirement from the CBN if it is…

A new report from Ernst and Young estimates that 17 out of 24 banks might not meet the capital requirement from the CBN if it is increased 15-fold from its current N25 billion.

Nairametrics, which quoted the report, said the finding discusses the options available to banks who might fall outside the capital requirements from the CBN.

Although the report acknowledged that financial soundness indicators show that Nigerian banks are largely safe and resilient as of 2023.

According to the report, the recent plan by the CBN to increase the capital base of banks will lead to a series of Mergers and Acquisitions (M&A) as witnessed during the last recapitalisation exercise in 2004/2005. The last recapitalisation exercise of the apex bank reduced the number of banks from 89 to 25.

It stated, “While the CBN governor gave no indication as to the magnitude of the proposed hike in the capital base, we have assumed what the proposed increment will be based on three different scenarios underpinned on current macroeconomic conditions. On the back of that, we were able to determine the number of banks (across the three licence types) that may fall below the new minimum capital thresholds.

“In a worst-case scenario, i.e., given a capital multiplier of 15, about 17 out of 24 banks would not meet the new minimum capital.”

The report noted that the plan to recapitalise banks is premised upon the recent devaluation of the naira in 2023. It explained that the exchange rate as of 2005 during the last exercise in 2005 stood at N132.9/$ but the naira currently exchange for over N1400/$.

Furthermore, the N25 billion capital base in 2005 amounted to $188.2 million, this has dropped significantly to a mere $18.4 million using the recent exchange rate.

https://dailytrust.com/bank-recapitalisation-17-out-of-24-banks-might-not-meet-cbn-capital-requirements-report/

Count Stanbic IBTC Bank out of that 17, the only bank that has structure and always comply with CBN policies 100% is Stanbic IBTC Bank.

CBN should please list them

I just wish dt uba is among

These pple no wan free my money since i tell dem say i wan close my account

They almost took offence ooo
For my own account
My money wey dem never refund don reach to pay for somebody shop rent

It's a shame that we allow our policies and Economy to depend on Dollar exchange rate.

Nothing must happen to the 2k in my kuda o, i no wan hear story o

If you bank is not among FUGAZ,(FBN, UBA, GT, ACCESS and ZENITH Bank) Know say your dey play ping pong with your funds, your money fit loss at any time as those smaller banks go begin find ways and means to raise the new capital base. Shine ur eyes o

With all the gains from Fx transactions

Anyway it’s not new soludo did it 20yrs ago from 89 banks down to 24 capital base from 2b to 20b so 17 is still better

Which one of this banks can make the 7 left

My prediction

First bank
Access bank
Gtbank
Stanbic ibtc
Citi bank
Standard Chartered
And maybe UBA

FCMB abeg make i go withdraw my money now. I nor won hear

Long overdue. Maybe they can start giving SMEs loan.

It should be reduce to 10 so as the central bank having total control of the commercial banks

It is sure for these banks:

First Bank
GTBank
Zenith Bank
Access Bank

This is where OPAY comes in

Toluabigr8:
Count Stanbic IBTC Bank out of that 17, the only bank that has structure and always compliant with CBN policies. 100%

That has to be GTBank

So basically if you wan open bank for Nigeria it only requires $18m capital base?
Nawa o
This country has really hit rock bottom
Nigerian is finally dead
Tinubu has killed this country!!!

Bribery don finish for Nigeria?




The weak banks will still find themselves in the system.

datola:
[/b]

That has to be GTBank

They play, just Google gtb + fine + CBN

From $188m to just $18m in just less than 19 years😂😂😂
God are u sleeping?
Why are u not paying attention to this circus joke that is Nigeria na

Time to break up this godforasken British experiment

Oka4:
This is where OPAY comes in

OPay has the way more than that capital base requirement
They are officiai the leading digital bank in Nigeria
Even commercial banks are scared of them

Djele:
FCMB abeg make i go withdraw my money now. I nor won hear

U too y u go dey use fcmb ?

I can sleep well with Zenith bank and Access bank...their capital base is over 1 trillion naira. My money dey safe with those two banks..no shaking


Genius J

Hmm..
Make them just sell Polaris and unity bank to me, make I Kukuma use their branches open hotel...

As for the above mentioned bank customers, make una just jejely carry una money go Opay...

list the banks lets know, so we can withdraw our money jejely

Another rat race. .

Shebi most of them have manipulated the FX crises season to make loads of artificial profits. . Let's see how they survive in this context.

Nigerians have been milked by the MDs and directors of these banks heavily.

Oka4:
This is where OPAY comes in

I love opay like kilode

Will the increase in the capital base of commercial banks increase the value of naira?

Oka4:
This is where OPAY comes in

all these conventional Nigerian banks should take a tutorial from Opay on how to do straightforward banking..

Oka4:
This is where OPAY comes in

Come in to do what?
They Thief my money, and they are ignoring my complaint.

It is now cheaper to own a bank in Nigeria than it was in 2005.

Godfullsam:
Will the increase in the capital base of commercial banks increase the value of naira?

Not really.

It's basically to guide against banks' insolvency which will prevent loss to customers funds and investments.

It will also increase their lending power, which might indirectly advance productivity in the economy.

Although, increased productivity if channelled to exportation, can increase the strength of the naira.

99thEnemy:
CBN should please list them

Your money abi lwkmd