Liquidity Crisis May Trigger Fresh Capital Raising by Banks – Thisday

Obinna Chima

The liquidity crisis identified in Skye Bank Plc, which led to the Central Bank of Nigeria’s (CBN) removal of its board on Monday, is likely going to result in fresh capital raising by commercial banks, as they seek to maintain the stipulated capital ratios in the face of a weakening macroeconomic environment.

While some banks had at their 2015 annual general meetings earlier this year, obtained the approval of their shareholders to raise fresh capital, others may be compelled by the development at Skye Bank to seek for ways to beef up their capital bases.

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