Browsing: Commercial banks

Minimum capital requirement

Nigeria Raises Bank Operating Capital Threshold to $359 Million

Banking
  • The Central Bank of Nigeria has decided to increase the minimum capital requirement for lenders to bolster the country’s economy.
  • Nigerian banks now face weaker capital ratios and higher impaired loans.
  • The last time Nigeria recapitalised its banking sector dates back to 2004.

Minimum capital requirement for lenders

Following the surge in inflation levels, a deteriorating economy, and the plummeting of the Naira, the CBN has decided to increase the minimum capital requirement for lenders to bolster the country’s economy.

Under the new regulations, the Central Bank of Nigeria has raised the capital threshold for international banks to $359 million …

Government control in the adoption of CBDCs

Government control in the adoption of CBDCs in Africa

Business

Regionalising the power balance between central and commercial banks can address the risks associated with the adoption of CBDCs in Africa. Commercial bank digital wallets can thus reduce the costs underlying the correspondent banking channels. These wallets can also promote cross-border trade in Africa by restricting the focus of central banks to the B2B and interbank payment ecosystems. Central banks have traditionally managed this well while incorporating these systems across borders. In such a scenario, each actor—public and private—does what it does best.…

[elementor-template id="94265"]

…