Adeduntan, who featured on a live programme of the Broadcasting Corporation of Oyo State (BCOS) tittled: “Guest of the Month”, said the recapitalisation initiative was a critical step toward strengthening the nation’s financial system and ensuring banks are positioned to support large-scale economic growth.
“To achieve the aspiration of the current government, the banks need recapitalisation. It requires stronger banks to achieve this goal. Recapitalisation is a metric to measure the strength and size of banks, and it is very positive for the economy”, he said.
Adeduntan’s remarks come amid ongoing conversations within Nigeria’s financial and policy circles about the Central Bank of Nigeria’s renewed push for higher minimum capital requirements for banks as part of broader economic reforms.
He explained that a robust banking system was essential to finance the kind of economic activities needed to attain the government’s $1 trillion target, adding that “the economy requires stronger banks” to function effectively.
The former First Bank chief maintained that recapitalisation would not only strengthen financial institutions but also enhance their capacity to fund key sectors such as infrastructure, manufacturing, and technology. critical pillars for sustainable national development.
Speaking on the importance of banks to the economy and small scale businesses. Adeduntan, said: “Without a growing economy, banks cannot grow. Banks will thrive under a growing economy”.
