Central Bank of Nigeria (CBN) has said that deposit money banks (DMBs) yet to meet the ongoing recapitalisation requirements will continue operations while they work through legal and regulatory challenges that have slowed their compliance process.
CBN Governor, Olayemi Cardoso, disclosed this after the latest Monetary Policy Committee (MPC) meeting, noting that the banking sector recapitalisation exercise has so far been largely successful and reflects strong investor confidence in the Nigerian economy.
According to him, 33 banks met the new capital requirements; a development he said underscores the resilience of Nigerian investors and continued interest from foreign participants in the financial system.
He added that domestic investors accounted for about 74 per cent of total subscriptions in the exercise, while foreign investors made up the remaining 26 per cent, describing the participation mix as a strong endorsement of Nigeria’s economic prospects.
Cardoso said the process had progressed relatively smoothly overall, but acknowledged that a small number of banks were yet to complete their recapitalisation due to what he described as legal, regulatory and judicial constraints. He stressed that these institutions were not being treated as fundamentally weak, but rather as entities facing timing and procedural setbacks.
