The Nigeria Deposit Insurance Corporation (NDIC) has expressed its support for the proposed recapitalization of banks, emphasizing the necessity for larger banks to realize the vision of a $1 trillion economy.
Mr. Bello Hassan, the Managing Director of NDIC, conveyed this stance during a press briefing in Owerri, Imo State, held on the sidelines of the annual workshop organized for Business Editors and Finance Correspondents by the corporation.
Hassan acknowledged the sound performance of the banking industry, citing key indicators such as Capital Adequacy, Liquidity, Earnings, and Quality of Assets. However, he emphasized that achieving a $1 trillion economy requires the involvement of larger banks.
He stated, “I know, as we speak, if you look at the performance of the industry, it is very sound, considering 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.”
“In line with the government’s agenda to boost 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,” Hassan added.
