The Nigeria Deposit Insurance Corporation has expressed support for the move by the Central Bank of Nigeria to recapitalise banks in the country.
The NDIC spoke through its Managing Director, Bello Hassan, on Wednesday in Owerri, the Imo State capital.
Hassan, who spoke on the sidelines of the annual workshop organised by the corporation for Business Editors and Finance Correspondents, said while the banking industry is sound in terms of key indicators, namely: Capital Adequacy, Liquidity, Earnings and Quality of Assets, achieving a $1 trillion economy for Nigeria requires bigger banks.
He said: “I know as we speak if you look at the performance of the industry, it is very sound, looking at the key financial soundness indicators: capital adequacy, liquidity, earnings and quality of assets.
“But, certainly, the government is trying to grow our GDP to $1 trillion, we also need bigger banks to play in that space.
- Photo: Keyamo, Najomo grace NiGAV Award in Lagos
- Catholic Bishops task FG on insecurity, economic hardship
- Former Barca, Brazil star Dani Alves found guilty of rape
- Tinubu directs expeditious processing of welfare benefits, demands monthly KPI reports
- SSANU urges FG to pay four months withheld salaries
“As the government is trying to implement their agenda of growing the GDP to $1 trillion, we also need bigger banks to achieve that.
“I believe it is within that context that the CBN is recapitalising the banks, asking the banks to recapitalise, to enhance their capital.”