The Central Bank of Nigeria has directed banks to submit a capital restoration plan as part of regulatory efforts to support the exit from the forbearance regime.
In a circular signed by the CBN Director of Banking Supervision, Olubukola Akinwunmi, published on its website on Monday, the apex bank said the Capital Restoration Plan would complement its other measures which include termination of forbearance exposure and Single Obligor Limits waivers, suspension of payment of dividends, bonuses and Investment in foreign subsidiaries for affected banks.
The CBN said the plan should detail the management’s proposed strategies to restore full regulatory compliance, including (but not limited to) cost optimisation initiatives, risk asset reduction, significant risk transfers, and necessary business model adaptations.