In 2004, under the leadership of the then CBN governor, Charles Soludo, a major reforms took place in the banking sector. The capital base was increased from 2 billion naira to 25 billion naira, and this led to series of merger and acquisition and brought about the total number of banks in 2004 from 89 to 25. Currently, the capital base are categorized into three; banks with regional, national and international license are required to have 10 billion naira, 25 billion naira and 50 billion naira respectively.
Well, the recent development is that the banking sector is about to undergo a recapitulation exercise again. At the moment there's no clear information about the new capital base, but it is estimated to be a 15 - fold increase that will trim down the number of banks further.
A new report from Ernst and Young estimates that 17 out of 24 banks might not meet the capital requirement from the CBN if it is increased 15-fold from its current N25 billion.
If the report is to be correct, that 7 out of 24 banks are going to have the required capital base to still be operational, which banks do you think are going to make the list and why?
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https://dailytrust.com/bank-recapitalisation-17-out-of-24-banks-might-not-meet-cbn-capital-requirements-report/#google_vignette•
https://www.google.com/amp/s/punchng.com/only-seven-banks-can-meet-cbn-recapitalisation-requirements-report/%3fampUBA
Zenith Bank
Access Bank
TajBank
FCMB
POLARIS Bank
And maybe fertility Bank,
are the few banks I know that might survive it because they have huge capacity and profit margin, you can check their yearly profit.
however I think all of these is no longer necessary as most Nigerians have migrated to using fintech banking system which to a large extent has reduced the usage of conventional Banks. OPAY, MONIEPOOINT, Kuda etc.
There's no doubt about the fact that we still need them around, but for me I think their services are too slow compared to the new generational Banks especially online banks we have now. Banks like, unity Bank, Eco Bank, union Bank, and some i cannot remember need to either get a merger or recalibrate their services because it's very poor.