The Central Bank of Nigeria – CBN, has warned deposit money banks to avoid raising capital from illicit sources as part of the ongoing recapitalisation exercise.
The apex bank said the measure was necessary to preserve financial system stability and ensure that the banking sector remains strong enough to support the country’s one trillion dollars economic target.
Speaking at the 36th Finance Correspondents’ Association of Nigeria and Business Editors’ Seminar in Abuja, the Director of Banking Supervision at the CBN, Dr Olubukola Akinwunmi, said while the recapitalisation exercise is designed to reposition the sector for bigger responsibilities, the bank will not compromise its regulatory oversight.
He explained that the new minimum capital thresholds announced by the bank on March 28, 2024, were introduced to address the structural imbalances in the economy and prepare banks to absorb shocks from both domestic and global headwinds.