Despite criticisms from some quarters over the ongoing sanitisation in the banking sector, some dealing members on the floor of Nigerian Stock Exchange have said that the exercise would boost investors’ confidence in the capital market.

They are of the view that not only would confidence return to the market but the credit crunch in the financial system would also ease with the injection of N620 billion into some of the banks.

The Managing Director of Ibaksworth Investment & Securities Limited, Mr Kayode Awotile said the CBN’s clean-up exercise would encourage foreign investors into the banks and the nation’s economy in general, adding that it is a confidence boosting measure. He urged the CBN to carry out strict and periodic checks on the banks after the current exercise as part of measures to strengthen them, adding that the action taken by the apex bank was to ensure quick rescue of the nation’s economic life-wire.

Also speaking recently, Mr Funmi Abiodun, a broker with Supra Commercial Trust Limited said the exercise had turned out to be positive for the market in terms of confidence because investors are now showing more interest in the banking sector, noting that most of the banking stocks have been closing on high bid since the conclusion of the audit.

While observing that the banking sector accounts for 60 percent of the market capitalisation, he said the increasing activities in the banking stocks would definitely rub off on other sectors as well.