Banks Recapitalisation: Expert Says Emefiele On Track

A Financial Expert, Prof Uche Uwaleke says the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele is on track on plans to recapitalise Nigerian banks.

Uwaleke said this on Tuesday in Abuja, while reacting to the policy road map reeled out for CBN by Emefiele for the next five years.

The CBN governor said recapitalisation of Nigerian banks was long overdue as it was last done in 2004 by Prof Charles Soludo, the then governor of the apex bank.

Uwaleke, a professor of Finance and Capital Market, Nasarawa State University, Keffi, said the plan would promote financial stability.

He said bigger banks were in a stronger position to form financial intermediation functions.

“This plan of CBN is a welcome development because when banks have the required capital base, it will be enlisted among the big banks and the big banks have the capacity to withstand shock in any economy.

“Another advantage is that it will help in the global ranking of banks, at present, no Nigeria bank is among the best 500 in the world.

“Such banks will be able to lend to private sectors and it will be easier for CBN to monitor and supervise,’’ he explained.

 

Leave a Reply

Your email address will not be published.

WP Twitter Auto Publish Powered By : XYZScripts.com