The Centre for the Promotion of Private Enterprise (CPPE) on Monday said the proposed recapitalisation of banks should be done to minimise shocks and disruptions to the banking system and the economy at large.
In a statement signed by Muda Yusuf, director of CPPE, the think tank said the purpose of adequate capitalisation is to ensure the efficiency and stability of the financial system.
Mr Yusuf explained that capital adequacy measures the capacity of a bank to meet its financial obligations and absorb any shocks related to losses.
