The Association of Corporate and Marketing Communication Professionals of Banks (ACAMB) has assured Nigerians that banks are safe with the recapitalization introduced by the Central Bank of Nigeria.
ACAMB said in a statement released on Monday by its President, Rasheed Bolarinwa, that Nigerian banks will keep collaborating with the relevant financial authorities to revitalise the economy.
The statement said, “The Central Bank of Nigeria (CBN) has released the much-awaited circular on the recapitalization of the banking sector, which is welcomed by the Association of Corporate and Marketing Communication Professionals of Banks (ACAMB).
It should be remembered that ACAMB, a significant participant in Nigeria’s banking industry, together with other important stakeholders, confirmed support for the recapitalization at the initial announcement of the intended recapitalization by CBN Governor Dr. Olayemi Cardoso.
Banks Must be Ready to Play Their Role
“ACAMB’s conviction that there is always space for expansion, even though Nigerian banks are recognised throughout the world as secure, robust, and healthy, is reinforced by this support.
Jerrymusa.com reports 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 role of financial intermediation.
Any concerns regarding the purpose, methodology, and potential results of the upcoming recapitalization exercise have been allayed by the CBN circular on the review of the minimum capital requirements for commercial, merchant, and non-interest banks over the next 24 months.
The apex bank is pushing the banks to expand their capacities to meet competitive domestic and international financial needs as part of its developmental mandate. This is the significance of the announced recapitalization: Nigerian banks remain safe and dependable.
The circular’s main theme and its explanatory comments further confirm the stability of the banking industry, in keeping with many rating reports on Nigerian banks published by reputable domestic and foreign rating agencies.
“We applaud CBN for the consideration it showed in creating the announced modality for the recapitalization.
The ACAMB specifically points out that, in contrast to the former practice of using shareholders’ funds, the new minimum capital base for each category of banks is defined as the addition of share capital and share premium.
“We kindly request that the public notice this development. As things stand, banks are in agreement, so there’s no reason to be afraid because they can meet the recapitalization requirements in accordance with the solutions that the central bank has approved.
According to all available information, this recapitalization will benefit the Nigerian banks, the financial sector, and the overall economy.
“The Nigerian capital market has the depth to meet banks’ capital needs, with banks being the most influential group.
With the deadline extended until 2026, banks will have plenty of time to complete their recapitalization plans without experiencing an excessive amount of crowding.
“Investors both domestically and internationally laud banking stocks for their history of strong returns and liquidity. Investors will take notice of this pedigree and the banks’ outstanding performance in spite of economic headwinds, as they understand that recapitalization translates into stronger institutions and higher profits.
“The banking sector will keep collaborating with financial regulators to strengthen the economy. Nigerian banks would be in a stronger position to promote economic growth, the real sector’s expansion, and the development of larger banking brands that can compete on a continental and international level, thanks to this recapitalization.
“Banks and the CBN will keep working together to carry out the recapitalization process. Additionally, as the recapitalization process moves forward, ACAMB will be interacting with all parties involved to guarantee fair and accurate representation.
“ACAMB assures all shareholders and depositors to continue doing business with Nigerian banks without fear.”