The Central Bank of Nigeria (CBN) has released new minimum capital requirements for commercial, merchant and non-interest banks.
In a statement on Thursday by its Acting Director, Corporate Communications Department, Hakama Sidi Ali, the apex bank pegged the minimum capital base for commercial banks with international authorisation at N500 billion.
The CBN added that national authorisation commercial banks need to meet an N200bn threshold, while those with regional authorisation are expected to achieve an N50bn capital base.
The apex bank also disclosed that the new requirements for non-interest banks with national and regional authorisations are N20bn and N10bn, respectively.
It said the increase was necessary due to prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks.
Recall that a circular signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasized that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.
According to the circular, the move, initially disclosed by the CBN Governor, Olayemi Cardoso, in his address to the Annual Bankers’ Dinner in November 2023, was to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.
To enable them to meet the minimum capital requirements, the CBN urged banks to consider inject fresh equity capital through private placements, rights issues and/or offers for subscription; Mergers and Acquisitions (M&As); and/or upgrade or downgrade of license authorisation.
Furthermore, the circular disclosed that the minimum capital shall comprise paid-up capital and share premium only. It stressed that the new capital requirement shall not be based on the Shareholders’ Fund.
The CBN circular said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licenses submitted after April 1, 2024.The post CBN Increases Minimum Capital Base For Banks appeared first on SwordPress By Dotifi.com Premium Domains .