The Director of Banking Supervision Department, CBN, Dr Olubukola Akinwumi, gave this assurance on Monday in Abuja, at the ongoing 36th Edition of Finance Correspondents and Business Editors Association of Nigeria Seminar organised by the Central Bank of Nigeria (CBN).
The theme of the seminar is: “Playing the Global Game: Banking Recapitalisation Towards a One- Trillion Dollar Economy”.
While responding to questions from newsmen, he said the credibility of local banks was rising due to their ability to address various challenges, including exchange rates, thereby boosting investor confidence.
Akinwumi explained that they were making progress toward meeting the banks’ recapitalisation deadline but declined to comment on how much they had been able to raise individually.
He explained that the Federal Government was pursuing policies that prioritise agriculture, infrastructure, education and health.
The director noted that the nation’s banks were well-positioned and ready for investments.
Akinwumi explained that the apex bank was implementing policies to enhance investment in the economy, particularly within the banking sector.
He stated that the recapitalisation drive aims to promote consolidation and innovation in the sector.
Akinwumi also said that the CBN is committed to combating illicit financial flows and would not admit unverified funds into the banking system.
He added that the apex bank would conduct thorough verification of all incoming funds to ensure transparency and security.
He mentioned that the CBN had outlined flexible avenues for banks to raise capital, including initial public offerings, rights issues, private placements, mergers and acquisitions.
Also speaking on banks’ recapitalisation, Mr Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), said the sector needs the collaboration of all Nigerians.
Alawuba called for value reorientation toward patronising Nigerian goods and services for the growth of the banking sector.
He stated that Nigerian banks were currently collaborating more with foreign financial institutions.
He said the nation’s banks and other African banks were already taking over the continent’s markets.
He expressed hope that all local banks would be able to meet the CBN’s recapitalisation deadline.
He, however, called for some measure of flexibility from the apex bank for those that may require slight time extensions to comply with the requirements deadline. (NAN)
