The Association of Corporate & Marketing Communication Professionals of Banks (ACAMB) has expressed the readiness of banks to meet up with the Central Bank of Nigeria (CBN) requirements on the banking sector recapitalisation.

A statement e-signed by the president of the association, Rasheed Balarinwa said the Recapitalisation agenda of the CBN led by Dr. Olayemi Cardoso will further enhance banks capacity to strengthen their capacities to meet competitive domestic and global financial needs.

ACAMB also commended the CBN for clearly stating the capital base required for different categories of bank, stating the resolve of banks to meet the requirements.

“The CBN circular on review of minimum capital requirement for commercial, merchant and non-interest banks over the next 24 months has laid to rest any anxiety about the intention, process and possible outcome of the new recapitalisation exercise.

“This support underlines ACAMB’s belief that while Nigerian banks are globally regarded as safe, resilient and thriving; there is always room for growth. 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.

“The banking industry will continue to work with financial authorities to build up the economy. This recapitalisation 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 continentally and globally.

” 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 use of shareholders’ funds. We urge the public to take note of this change, Bolarinwa stated.

He said the Recapitalisation is a pointer that Nigerian Banks are safe and resilient but must brace up to be globally competitive

“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.

ACAMB said its role in the capital market will be made manifest in the bid to Recapitalise owing to its depth.

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 pledged the continuous cooperation between banks and the regulator

He further stated that, “Banks will continue to cooperate with the CBN in the implementation of the recapitalisation programme. ACAMB shall also be engaging all stakeholders in order to ensure balanced and factual representation as the recapitalisation progresses.