announcement that Unity and Wema banks reached regulatory minimum capital requirement

Central Bank of Nigeria (CBN)

Yale University

Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 10-4-2010 Update on the recapitalization of Unity Bank plc and Wema Bank plc Central Bank of Nigeria (CBN) Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Central Bank of Nigeria (CBN), "Update on the recapitalization of Unity Bank plc and Wema Bank plc" (2010). YPFS Documents (Series 1). 11110. https://elischolar.library.yale.edu/ypfs-documents/11110 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu.   CENTRAL BANK OF NIGERIA PRESS RELEASE  UPDATE ON THE  RECAPITALIZATION OF UNITY BANK PLC AND WEMA BANK PLC  It will be recalled that in its Press Release dated June 28, 2010 captioned RE: JUNE DEADLINE FOR THE RECAPITALISATION OF UNITY AND WEMA BANKS, Central Bank of Nigeria (CBN) extended the deadline for the recapitalization of Unity Bank Plc and Wema Bank Plc by three months, ending September 30, 2010. A major reason for the extension was the unanticipated three months extension in the timeline for setting up the Asset Management Corporation of Nigeria (AMCON), which is expected to purchase non-performing loans in banks and serve as a recapitalization vehicle for the banking industry.  At the expiration of the deadline, CBN is pleased to note that Unity Bank Plc has successfully raised N17.34 billion through a Rights Issue, thereby meeting the regulatory capital requirement and the minimum capital adequacy ratio of N25 billion and 10%, respectively. The additional fresh capital shall, however, be subjected to capital verification which is scheduled to commence soon.   Wema Bank Plc, on its part, has applied to CBN seeking a banking licence to operate as a regional bank with a regulatory capital requirement of N10 billion (Ten Billion Naira). It has also applied to and obtained approval from Securities and Exchange Commission (SEC) to raise N7.5 billion fresh capital through a Special Placement Offer.  The bank has made additional recoveries of N4 billion (Four Billion Naira Only). All these point to a significant progress in its recapitalisation efforts.  However, the ultimate success of the recapitalisation of Wema Bank is partly hinged on the establishment of AMCON, the operationalisation of which has been slightly delayed for reasons beyond the bank’s control. Consequently, Wema Bank has requested for a 30-day extension ending October 30, 2010, to enable it conclude its capital raising exercise. The CBN has granted the request.  All stakeholders are advised to be guided accordingly.   Signed MM Abdullahi Head Corporate Communications 4th October 2010            

Update on the recapitalization of Unity Bank plc and Wema Bank plc

https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=12158&context=ypfs-documents

Update on the recapitalization of Unity Bank plc and Wema Bank plc

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