The Central Bank Of Nigeria (CBN) has set the record straight, affirming that no additional banks will face license revocation, and reiterating their unwavering commitment to upholding the integrity and stability of Nigeria’s financial system.
In a press release issued in the nation’s capital, Abuja, on Tuesday, the apex bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, provided clarity on the matter.
Mrs. Hakama Sidi-Ali, the Central Bank’s top communications officer, shed light on the matter in a statement released in Abuja on Tuesday.
“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 licenses 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 (CMNIBs),” she said.
The apex bank’s spokesperson, Mrs. Sidi-Ali, moved to allay market fears with her statement, addressing speculation about the potential license revocation of three major banks – Unity, Keystone, and Polaris – which followed the surprise withdrawal of Heritage Bank’s license on Monday.
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Mrs. Sidi-Ali disclosed that the plans are currently undergoing a comprehensive review by the Central Bank, suggesting a careful evaluation process.
She said that it would enable them to provide much-needed credit to critical sectors of the economy.
“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,” the director said.
In a dramatic turn of events, the CBN on Monday stripped Heritage Bank Plc of its operating license, effective immediately, sending ripples through the financial community.
In fulfillment of its mandate to foster a healthy financial ecosystem in Nigeria, the Central Bank exercised its powers under Section 12 of BOFIA, taking decisive action to maintain the stability of the financial system.
The bank’s management team and board of directors proved unable to reverse the bank’s downward financial trajectory, creating a situation that threatened to destabilize the financial sector as a whole.