Reports Says CBN Minimum Capital Base For Banks May Hit As Much As N909 Billion

For a regional banking license, banks may be required to increase their capital base by N181.85 billion, and for an international banking license, N909.27 billion.

This is in line with CardinalStone Securities’ FY 2024 Outlook for the banking sector.

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The paper states that the possibility of this happening depends on the Central Bank of Nigeria’s decision to go back to the GDP-to-capital ratios in dollars that were established in 2005. Regional banks’ percentages varied from 0.04% to 0.22% for commercial banks.

However, the report also noted that the goal of reaching a $1 trillion GDP size in the next 7 years may necessitate an even higher range for capital base requirements.

The report noted there has been a substantial decline from 2005’s recapitalization exercise, as the requirements which ranged from 0.04% to 0.22% of the GDP in USD terms as of 2005, have dropped to a range of 0.00% to 0.01% of the GDP in USD terms as of 2024.