THE NATION
- CBN targets strong banks capable of supporting govt’s $1tr GDP by 2030
Ongoing bank recapitalisation will not be business as usual, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said yesterday.
He hinted that the conditions will be tough to ensure that all banks that scale the hurdles will be strong enough to withstand the headwinds.
The banks should be able to drive the economic target of the government, which is to achieve a $ 1 trillion dollar Gross Domestic Product (GDP) mark by 2030.
The plan is to strictly scrutinise the financial institutions as they move towards recapitalisation.
CBN governor spoke in London at an event by the United Kingdom-Nigeria Chamber of Commerce.
His position was presented by Deputy Governor (Financial Systems Stability) Mr. Phillip Ikeazor.
Cardoso said: “The CBN will rigorously enforce our fit and proper criteria for prospective new shareholders, senior management and board members of banks.”
He added the CBN will ensure banks have sufficient capital to meet their operational needs and manage risks effectively.
Cardoso said the apex bank will scrutinise the financial health of the merged entities to ensure a realistic assessment of their financial position.
He reiterated that the core objective of the recapitalisation programme is “to trigger the emergence of stronger, healthier and more resilient banks.”
This, he said, aims to create a more robust banking sector capable of withstanding economic shocks and supporting the government’s ambitious goal of achieving a $1 trillion Gross Domestic Product (GDP) by 2030.
The CBN governor listed the anticipated gains of recapitalisation to include: strong banks that are expected to lend more money to businesses and individuals, stimulating economic growth; a more stable and secure banking system capable of attracting greater foreign investment; and improved financial health which will lead to a more stable foreign exchange market.
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