Banking Sector Remains Resilient as 14 Banks Hit New Capital Benchmark – CBN

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says 14 banks have fully met the apex bank’s new minimum capital requirements.

Cardoso disclosed this during a news conference in Abuja on Tuesday while briefing journalists on the outcome of the Monetary Policy Committee (MPC) meeting.

He said the banking sector has remained resilient, with several indicators staying within safe limits.

“On the financial sector, the MPC noted the continued resilience of the banking system with most of the financial soundness indicators remaining within projected benchmarks,” Cardoso said.

He further noted that the ongoing recapitalisation exercise has seen significant progress, urging continued momentum in its implementation.

“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement,” he said. “They therefore urge the bank to continue the implementation of policies and initiatives that will ensure the successful completion of the ongoing recapitalisation exercise.”

Cardoso also addressed the recent withdrawal of forbearance measures and civil obligor waivers, stating that they enhance transparency and risk management in the sector.

The MPC, he said, is confident that the changes do not threaten the banking sector’s stability.

He added: “The committee also acknowledged the successful termination of forbearance measures and waivers on civil obligors, which have helped to promote transparency, risk management, and long-term financial stability in the banking system.”

“The MPC reassured the public that the impact of the removal of forbearance is transitory and poses no risk to the soundness or stability of the banking system.”