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Nairaland Forum / Nairaland / General / Business / CBN Pegs Minimum Capital Base For Banks At ₦500 Billion (15985 Views)
N500b Capital Base: Capital Needed By Commercial Banks With International Spread / CBN May Raise Banks Capital Base To ₦900 Billion / CBN To Increase Capital Base Of Banks (2) (3) (4)
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CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by seunmsg(m): 10:21pm On Mar 28 |
The Central Bank of Nigeria (CBN) has unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at ₦500 billion. https://www.channelstv.com/2024/03/28/breaking-cbn-pegs-minimum-capital-base-for-banks-at-n500bn/amp/ 53 Likes 5 Shares
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Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Paraman: 10:23pm On Mar 28 |
The likes of wema and unity bank might become regional banks again. 41 Likes 3 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Didijiji: 10:25pm On Mar 28 |
500 Kini ![]() |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by seunmsg(m): 10:27pm On Mar 28 |
All our commercial banks will have to source for more capital including investment from foreign partners. This will bring more forex into the country and strengthen the banking system. The positive impact will flow to the capital market and other associated organizations. This is super bullish for the country. 96 Likes 8 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by seunmsg(m): 10:28pm On Mar 28 |
Paraman: Who told you Wema bank can’t raise the new N500b capital base? 81 Likes 6 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Paraman: 10:32pm On Mar 28 |
seunmsg:we shall see 15 Likes 5 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Wayan1: 10:34pm On Mar 28 |
Adequate capital levels enable banks to attract funding, build strong customer relationships, and effectively manage risks associated with lending. This promotes greater market discipline and ultimately reduces the likelihood and severity of financial crises. 24 Likes 2 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by DeLaRue: 10:41pm On Mar 28 |
seunmsg: Wema is not international, so it will only need to raise its capital to N200b. That's still a lot for Wema. 36 Likes 3 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Penguin2: 10:52pm On Mar 28 |
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth. Or tell me what this particular policy is meant to achieve. Explain it to me like I’m in nursery school. In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining. So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited. If you disagree with this, then tell me the advantages of this policy. I’ll wait 46 Likes 2 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Antoeni(m): 10:54pm On Mar 28 |
This will force some consolidation but given the macro conditions at the moment might not be the best time for the rebase. 1 Like |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by emkz: 11:14pm On Mar 28 |
Penguin2: Mop up most of the funds stolen by certain people. Force those who took funds out to repatriate them as a way of cleaning the funds. Attract more foreign investors who want to make money from our economy. Making the banks stronger and competitive. Get them to be involved in the core practice of banking instead of funding rubbish. 103 Likes 7 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Penguin2: 12:02am On Mar 29 |
emkz:How would having about 5 commercial banks with 500billion naira capital base attract investment? 12 Likes 1 Share |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Mercury12(m): 12:09am On Mar 29 |
Penguin2:there is never a choice in the first place. There was never were. Do you think you live in the sixties or you think it's just a Nigeria thing? 27 Likes 5 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by bigpicture001: 12:18am On Mar 29 |
Paraman: I think is only for those who operate at international level...dox which h are active in other countries 1 Like |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by emkz: 12:24am On Mar 29 |
Penguin2: Only banks with international accreditation would need 500 billion naira. Others with national accreditation need 200 billion while regional banks need 50 billion naira. With 500 billion naira funds as capital base, the bank is seen as very strong, and systemically important to the country and continent. With such strength, they can mobilize more deposits from more customers, capture the unbanked population, and that means they may attract more investors to take loans for business, mortgage, auto, fees and so on; or buy more shares and they'd be able to mobilize high ticket loans which servicing can give them more profits and shareholders are happy. Corporate governance and internal controls would be more stringent. The era of bank MDs living like kings would also be over because people who have put their funds into those banks as investors would put them under pressure. 67 Likes 10 Shares
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Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by blacknp(m): 12:30am On Mar 29 |
Penguin2:Sharap, why must you always be negative every time? Oversized bird, way siddon tied for kitchen dey wait make water boil, make they take am use am cook make penguin stew, wan claim say em know pass CBN? 61 Likes 8 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by aieromon(m): 12:42am On Mar 29 |
2004 CBN Recapitalisation exercise - Twenty-five banks emerged from 75 banks, out of a total of 89 banks that existed as at June 2004. - Licenses of 14 banks were revoked for failure to meet recapitalisation conditions African Express Bank - Lucky 25 after injection of capital or Merger & Acquisition deals
https://www.cbn.gov.ng/out/speeches/2006/govadd%2016-1-06.pdf 11 Likes |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Donaldoni: 12:45am On Mar 29 |
Penguin2: Just shut up if you don't know what to say. ![]() Now, the banks will be in a mad, desperate rush to have Naira thereby mopping up excess liquidity from the system. The Naira will then appreciate! ![]() 76 Likes 10 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Jokay07(m): 1:17am On Mar 29 |
Here to read comments 4 Likes 2 Shares
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Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by IBBG(m): 2:10am On Mar 29 |
Banks will now have to seat up and buckle their belt to meet target 15 Likes 2 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Kloenboi: 2:41am On Mar 29 |
$380m Meanwhile how would you classify providus Bank? 2 Likes |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by CodeTemplar: 3:29am On Mar 29 |
Will that make them give loans freely? Especially to MSMEs? 2 Likes |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by leisuretym: 4:33am On Mar 29 |
Whatever strengthen the Economy 11 Likes 1 Share |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by SEGLIZ: 4:37am On Mar 29 |
season of unnecessary deductions are here. |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by id4sho(m): 4:39am On Mar 29 |
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Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by pretydiva(f): 4:43am On Mar 29 |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Offpoint1: 4:48am On Mar 29 |
500b is easy to actualize as a bank. Just do abracadabra with ya customer N100 - 1k 2 Likes |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Simeonjoe1: 4:56am On Mar 29 |
Ok |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by Arnold1(m): 4:58am On Mar 29 |
N500 billion naira = > US$ 350 million N200 billion naira. = > US$ 150 million Tall order! The banks have till March 31st, 2026 to comply with the CBN’s directive. Overall, I believe the merits of this policy out weigh the demerits. 23 Likes 3 Shares |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by kollybay4u: 4:59am On Mar 29 |
![]() 2 Likes
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Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by karzyharsky(m): 5:00am On Mar 29 |
Chai liability target |
Re: CBN Pegs Minimum Capital Base For Banks At ₦500 Billion by kollybay4u: 5:01am On Mar 29 |
Kloenboi:Regional bank 4 Likes |
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