Bank recapitalization refers to the process of increasing a bank's capital base to improve its financial stability and resilience. This can be achieved through various means, such as issuing new shares, retaining earnings, or attracting new investors.
The primary objectives of the CBN’s monetary policy are to secure and preserve price stability, to sustain high levels of employment, and to ensure the financial system remains sound.[15] Since the instruments at the CBN’s disposal cannot directly alter these macroeconomic outcomes, it instead uses those tools to affect certain intermediate variables (such as the interest rate at which a particular bank could lend to other banks).
