Group Advises CBN On Recapitalization To Avoid Disruption.

Centre for the Promotion of Private Enterprise has expressed support for the decision of the Central Bank of Nigeria to increase the capital base of banks, even as it calls for the right management of the process to avoid economic disruptions.

A statement signed by the Chief Executive Officer of CPPE, Dr Muda Yusuf said, merchant and non-interest banks and promoters of proposed banks announced the review of the capital requirements for the operations of the affected categories of banks in the country, while, the apex bank in a statement signed by its Acting Director of Corporate Communications, Sidi Ali, said it had become necessary to raise the capital base of the banks.

Reacting to the development, Yusuf said that inflation in the country had eroded the capital base of banks over the years, and there was need to recapitalize, adding that, non-interest banks with national and regional authorizations will need to increase their capital to N20bn and N10bn, respectively.

Reacting to the development, Yusuf said that inflation in the country had eroded the capital base of banks over the years, hence the need to recapitalize.

The CPPE boss also said, the apex bank must assure depositors of the safety of their funds in the banking system, irrespective of the current level of capitalization of banks.