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''Banking Sector Recapitalisation Beneficial To Stock Market''

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has said the plan by the Central Bank of Nigeria (CBN) to raise the capital base of commercial banks above the current N25 billion minimum level will be beneficial to the stock market. Onyema, said this in response to THISDAY’s question on the sidelines of an economic conference organised by Rand Merchant Bank Nigeria in Lagos. He, however, said the NSE was studying the pronouncement by the CBN to know what the banking sector regulator intends to achieve.

Onyema said: “We are still studying the pronouncement. So, we are not quite sure what it means. But what I can say is that historically, if you look at the last big recapitalisation efforts for the banking sector, the capital market was greatly used for raising the financing and indeed it was very beneficial to the capital market to the extent that the market became more sophisticated and a lot more players came into the market from the investors perspective.”

(This Day)

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