CBN Increases Capital Base Requirements for Nigerian Banks
An announcement was made by the Central Bank of Nigeria (CBN) concerning a substantial increase in the capital base requirement for commercial banks is indicative of a broad financial reform intended to fortify the nation’s banking industry.
The policy directive, which was made public on Thursday, requires banks to raise their minimum capital bases by a significant amount. The amount of the increase will depend on the size of the bank.
Commercial banks having international authorization are now required by the new regulations to strengthen their capital base to N500 billion.
In a similar vein, banks having regional authorization are anticipated to reach a capital floor of N50 billion, while those having national authorization are required to meet a minimum capital threshold of N200 billion.
The CBN’s acting director of corporate communications, Mrs. Hakama Sidi Ali, verified the change in policy in Abuja. She underlined that the regulator is committed to using these steps to improve the resilience and stability of the banking industry.
The reforms also affect merchant banks, which are now required to maintain a minimum capital of N50 billion, in addition to commercial banks.
Furthermore, national authorization non-interest banks must increase their capital to N20 billion, and regional authorization banks must keep a minimum capital base of N10 billion.