The Nigeria Deposit Insurance Corporation (NDIC) has expressed its support for the proposed recapitalization of banks, asserting that the country requires larger banks to realize the vision of a $1 trillion economy.
Mr. Bello Hassan, the Managing Director of NDIC, conveyed this endorsement in Owerri, Imo State, during a session with journalists at the annual workshop organized by the corporation for Business Editors and Finance Correspondents.
Hassan emphasized that while the banking industry currently demonstrates solidity based on key indicators such as Capital Adequacy, Liquidity, Earnings, and Asset Quality, the ambition to achieve a $1 trillion economy necessitates the presence of more substantial banks.
He stated, “I know as we speak, if you look at the performance of the industry, it is very sound, considering key financial soundness indicators such as capital adequacy, liquidity, earnings, and quality of assets. However, certainly, the government is trying to grow our GDP to $1 trillion; we also need bigger banks to play in that space.”
Hassan continued, “As the government is implementing its agenda to grow the GDP to $1 trillion, we also need bigger banks to achieve that. I believe it is within that context that the CBN is recapitalizing the banks, asking them to recapitalize to enhance their capital.”