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Nigeria Deposit Insurance Corporation, NDIC, has thrown its weight behind the proposed recapitalisation of banks, saying the country need bigger banks to achieve the vision of a $1 trillion economy.
Managing Director of NDIC, Mr. Bello Hassan, stated this in Owerri, Imo State, while addressing journalists on the sidelines of the annual workshop organised by the corporation for Business Editors and Finance Correspondents.
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Hassan said while the banking industry is sound in terms of key indicators namely Capital Adequacy, Liquidity, Earnings and Quality of Assets, achieving a $1 trillion economy requires bigger banks.
He said: “I know as we speak if you look at the performance of the industry, it is very sound, looking at 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.
“As the government is trying to implement their agenda of growing the GDP to $1 trillion we also need bigger banks to achieve that. I believe it is within that context that the CBN is recapitalising the banks, asking the banks to recapitalise, to enhance their capital.”
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