The Central Bank of Nigeria had on Thursday announced new guidelines on its recapitalisation policy for banks, directing commercial banks with international authorisation to increase their capital base to N500 billion, and national banks, N200 billion.

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Izunazo, in a statement yesterday, noted that the CBN should intensify efforts to ensure that laundered funds are not used to recapitalise the banks and that only fit and proper persons end up as significant shareholders.

“This risk is minimised when banks go through the stock market, which offers a screening layer, in addition to that carried out by the CBN,” he stated.

The lawmaker commended the CBN for the recapitalisation programme, and assured of the support of his committee in ensuring its successful implementation.

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He said the adoption of tiered minimum capital requirements in respect of international, national and regional authorisation was commendable, unlike the uniform capital base of N25 billion, which applied in the 2005 banking recapitalisation exercise.

Daily Trust