DEPLOY ₦4.65TN RECAPITALISATION INTO PRODUCTIVE LOANS; CBN CHALLENGES BANKS
Reloaded News Desk
The Central Bank of Nigeria has challenged commercial banks to translate the ₦4.65 trillion raised through the banking sector recapitalisation programme into productive lending that supports businesses, infrastructure and economic growth.
The CBN said 33 banks participated in the recapitalisation programme, which was designed to strengthen the financial system and improve banks’ capacity to finance the economy.
The focus now shifts from raising capital to deploying it.
The apex bank expects stronger bank balance sheets to improve the capacity of financial institutions to support productive sectors of the economy rather than allowing additional capital to remain largely within financial assets.
The issue is particularly important for businesses facing high financing costs and limited access to long-term credit.
For the real economy, the significance of the recapitalisation will ultimately depend on how much additional financing reaches businesses, infrastructure projects and other productive activities.
The CBN’s message places pressure on banks to demonstrate that the new capital is translating into greater economic activity.
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