BANKS AND CONFLICT BETWEEN LIQUIDITY AND LENDING
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SOLA ONI argues that a stronger capital base should translate into better discipline, not higher risk-taking
It is encouraging that Nigeria’s latest bank recapitalisation has been declared a success by the Central Bank of Nigeria (CBN). Capital levels have increased, balance sheets are stronger, and confidence appears to have been restored. However, if history is any guide, this is only half the story. The previous recapitalisation also seemed impressive until reckless investments, insi
It is encouraging that Nigeria’s latest bank recapitalisation has been declared a success by the Central Bank of Nigeria (CBN). Capital levels have increased, balance sheets are stronger, and confidence appears to have been restored. However, if history is any guide, this is only half the story. The previous recapitalisation also seemed impressive until reckless investments, insi
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