LAGOS, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria has announced that it has no plans to revoke the licenses of any additional Deposit Money Banks.
This was disclosed by the Acting Director of Corporate Communications, Hakama Sidi-Ali, on Tuesday in Abuja.
Mrs. Sidi-Ali’s statement responded to speculations about plans to revoke the licenses of Unity, Keystone, and Polaris banks. These rumors arose after Heritage Bank’s operating license was withdrawn on Monday.
She said, “The attention of the CBN has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licences of three additional banks following its regulatory action against Heritage Bank Plc on Monday. The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system. The Nigerian financial system remains safe, sound, and resilient. Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the circular reviewing the minimum capital requirements for commercial, merchant, and non-interest banks.’’
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She stated that the plans are currently under review by the apex bank.
According to her, the CBN’s proactive measure to require CMNIBs to recapitalize will enhance their buffers against economic shocks and increase the capital available to Nigerian banks. She added that this would enable the banks to provide much-needed credit to critical sectors of the economy.
The director said, “This will increase the financial system’s contribution to the growth and development of a one trillion dollars Nigerian economy. The CBN will like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness.’’
On Monday, the CBN announced the immediate revocation of Heritage Bank Plc’s license. This action was taken in line with the apex bank’s mandate to promote a sound financial system in Nigeria and under the authority granted by Section 12 of the Banks and Other Financial Institutions Act.
The CBN stated that the bank’s board and management had failed to improve its financial performance, posing a threat to financial stability.