“Even before the CBN governor made the pronouncement, our bank was already considering raising fresh capital to significantly increase the capital base. So, we are in tune with the CBN governor,” the CEO of a Tier-1 lender told one of our correspondents on Saturday. He said, “Some DMBs (especially many in the FUGAZ category) are already making efforts to increase their capital base. The use of the CAR (the ratio of a bank’s capital to risk weighted assets) is a good example. He said, “On recapitalisation, banks are supposed to be sources of funding for activities or projects that will drive that $1tn economy.

Source: Punch November 26, 2023 07:51 UTC