Monday, September 8, 2025
27.6 C
Lagos

‘Recapitalisation will Strengthen Banks in Nigeria’

 

The International Monetary Fund (IMF) says recapitalisation will strengthen the resilience and capacity of banks in Nigeria, especially in view of systemic vulnerabilities in the banking sector.

After its recent mission to Nigeria, the IMF team issued the following statement:

“Banking system vulnerabilities should continue to be addressed. The mission welcomed recent efforts to reduce legacy non-performing loans. The introduction of risk-based minimum capital requirements would also help strengthen bank resilience. Notwithstanding the significant increase in lending, concerns about shortened maturity, asset quality and conflicting monetary policy signals call for revisiting the minimum lending to deposit ratio directive.

Further tightening of monetary policy—albeit through more conventional methods—is needed to contain domestic and external pressures arising from large amounts of maturing CBN bills. The mission reiterated its advice on ending direct central bank interventions, securitizing overdrafts to introduce longer-term government instruments to mop up excess liquidity and moving towards a uniform and more flexible exchange rate. Removing restrictions on access to foreign exchange for the 42 categories of imported goods would be needed to encourage long-term investment.

On border closure, the IMF said: “Nigeria’s border closure will continue to have significant economic consequences on the country’s neighbors. It is important that all involved parties quickly resolve the issues keeping the borders closed—including to stop the smuggling of banned products.”

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

Ethiopian Wins African Airline of the Year 2017 Award

Africa’s largest airline group, Ethiopian Airlines, is delighted to...

Nigeria Missing in Top 10 African ICT Ranking

In its 2016 global report on information technologies entitled...

Sanlam General CEO, Bode Opadokun, Wins 2023 CEO Today Africa Award

The CEO Today Africa Awards celebrates exceptional leaders who...

Global Airlines Financial Monitor: September 2016

The latest financial results indicate that industry profitability...

Emefiele Re-appointed for 2nd Term as CBN Governor

Mr. Godwin Emefiele, Governor, Central Bank of Nigeria (CBN)...

Weak Appetite for Large Caps Drags Index Lower …NSE ASI Down 95bps

The Nigerian equities market started the month of April...

Africa, ME Personal Computing Market Reports 12% Growth in 4thQtr 2021

    The Middle East and Africa (MEA) personal computing devices...
spot_img

Related Articles

Popular Categories

spot_imgspot_img