…….. Issues Routine Transitional Guidance for Select Institutions<\/p>\n
As part of its ongoing efforts to strengthen the banking system, the Central Bank of
\nNigeria (CBN) has introduced time-bound measures for a small number of banks still
\ncompleting their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic. <\/p>\n
This step is part of the CBN\u2019s broader, sequenced strategy to implement the recapitalisation programme announced in 2023. <\/p>\n
The programme, according to a statement signed by its Acting Director, Corporate Communications, Mrs Hakama Sidi Alli, was designed to align
\nwith Nigeria\u2019s long-term growth ambitions, which already led to significant capital inflows
\nand balance sheet strengthening across the sector. <\/p>\n
The statement noted that most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026, adding that the measures announced apply only to a limited number of banks.<\/p>\n
It stated that these include temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy.<\/p>\n
All affected banks, the statement inforned, have been formally notified and remain under close supervisory engagement, stressing that to support a smooth transition, the CBN has allowed limited, time-bound flexibility
\nwithin the capital framework, consistent with international regulatory norms. <\/p>\n
“Nigeria generally maintains Risk-Based capital requirements that are significantly more
\nstringent than the global Basel III minimums,” it stated. <\/p>\n
The statement read in part: “These adjustments reflect a well-established supervisory process consistent with global norms.”<\/p>\n
“Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts.”<\/p>\n
It assured that the CBN remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers\u2019 Committee, the Body of Bank CEOs, and other industry forums maintaining that the goal is to ensure a transparent, predictable, and collaborative regulatory environment.<\/p>\n
“Nigeria\u2019s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate
\nimplementation of reforms already underway,” it said.<\/p>\n
The apex bank, therefore, promised to continue to take all necessary actions to safeguard the sector\u2019s stability and ensure a robust, resilient
\nfinancial ecosystem that supports sustainable economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
…….. Issues Routine Transitional Guidance for Select Institutions As part of its ongoing efforts to strengthen the banking system, the Central Bank of Nigeria (CBN) has introduced time-bound measures for a small number of banks still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 […]<\/p>\n","protected":false},"author":2,"featured_media":7214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-8001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/comments?post=8001"}],"version-history":[{"count":1,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8001\/revisions"}],"predecessor-version":[{"id":8002,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/8001\/revisions\/8002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media\/7214"}],"wp:attachment":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media?parent=8001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/categories?post=8001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/tags?post=8001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}