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Friday, June 21, 2024

CBN not planning to revoke banks’ licenses

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The Central Bank of Nigeria (CBN) has announced that it has no plans to revoke the licences of Unity, Polaris, and Keystone banks.

This statement came in response to online reports suggesting that these banks’ licences would be terminated following the recent revocation of Heritage Bank’s licence.

In a post on its social media pages on Tuesday, the CBN dismissed these claims, stating, “The content is fake and not from the CBN.”

On June 4, the CBN revoked the banking licence of Heritage Bank due to the bank’s continued poor financial performance.

According to the CBN, the decision was made because the bank’s board and management had failed to improve its financial standing, posing a threat to financial stability.

“The board and management of the bank have not been able to improve the bank’s financial performance, a situation that constitutes a threat to financial stability,” the bank said.

The bank had shown no reasonable prospects of recovery, making the revocation of its licence a necessary step.

Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as the liquidator of Heritage Bank, in accordance with Section 12(3) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The CBN emphasised that this action underscores its ongoing commitment to ensuring the safety and soundness of Nigeria’s financial system.

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