The Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite actions on the increase of their capital base in order to strengthen the financial system against potential risk.
This was made known by the Governor of the CBN, Olayemi Cardoso, while briefing the press after the 294th meeting of the Monetary Policy Committee (MPC) on Tuesday, March 26, 2024, in Abuja, where interest rate was hiked from 22.75% to 24.75% by the committee.
Cardoso stated that the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable, safe and sound.
The committee, however, noted that to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.
What the CBN Governor is saying
Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.
“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”
