Bank Recapitalization in Nigeria Could Make Capital Inefficient Through Exclusion of Retained Earnings

You are a bank in Nigeria. You made a PROFIT of N20 million. And you have no plans to pay dividends to your shareholders, making that whole money available. Your regulator wants you to have a paid up capital of N15 million. But wait, the regulator cannot allow you to use that N20 million to … Continue reading Bank Recapitalization in Nigeria Could Make Capital Inefficient Through Exclusion of Retained Earnings