The central bank governor told people in Lagos that his crew is revamping the whole credit risk setup to make sure the roughly N4.14 trillion being raised through bank recapitalisation doesn't get blown on sketchy loans. Olayemi Cardoso said 27 lenders already tapped public offers and rights issues, and 16 hit the new capital floors before the March deadline. A fresh compliance department is running to watch over financial crime, market behavior, corporate governance, and ESG stuff.
Cardoso wants to kill off the boom-and-bust pattern that followed past recapitalisation rounds by pushing tougher controls on how banks manage the fresh capital. The regulator set up a web-based credit risk system that lets banks dial into the database for status checks on borrowers, and they are wiring it into other bank systems to boost efficiency. Stress tests confirmed the sector is holding up despite cyber threats and credit concentration problems, and the transition to Basel III rules should lock in better resilience.
Cardoso wants to kill off the boom-and-bust pattern that followed past recapitalisation rounds by pushing tougher controls on how banks manage the fresh capital. The regulator set up a web-based credit risk system that lets banks dial into the database for status checks on borrowers, and they are wiring it into other bank systems to boost efficiency. Stress tests confirmed the sector is holding up despite cyber threats and credit concentration problems, and the transition to Basel III rules should lock in better resilience.
