CBN: No Plan To Take Over More Banks

By Ayodele Oni

The Central Bank of Nigeria, CBN, says it has no plan to take over more Commercial Banks in the country.

The clarification comes on the heels of suggestions that the Yemi Cardoso-led government bank has axed the Boards of some money banks.

Similarly, Union Bank has assured its numerous customers on the financial position of the bank.

The clarification follows rumours of possible take over of the bank as it happened to Heritage Bank.

A statement signed by Union Bank Chief Executive officer, Yetunde Oni, stated that Union Bank is presently “robust and fully operational.”

This is just as the Central Bank of Nigeria, (CBN) dismissed the fears over possible liquidation of more banks in the country.

The CEO explained that CBN intervention early this year was to enhance “governance and operational efficiency.”

On its part, the CBN  stated that it was not contemplating any action against any Bank in the face of the stability of the banking system.

This cleared the air over the fate of some banks following the revocation of  of Heritage Bank Plc’s license.

The apex bank has therefore faulted reports of impending action against Unity, Fidelity, Wema and Polaris Banks.

The Bank’s Acting Director of the Corporate Communications Department, Mrs Hakama Sidi Ali, faulted the reports that the CBN was considering revoking the operating licences of Fidelity, Polaris, Wema, and Unity Banks.

She also clarified that a circular issued by the Bank on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, is currently being circulated as though it was issued on June 10, 2024

In a chat with newsmen, Mrs. Sidi Ali emphasized that Heritage’s case was isolated, adding that allegations of further revocation of licences prior to the completion of the bank recapitalisation exercise were mere fabrications aimed at creating panic within the system.

She said customers, particularly those of Heritage Bank, needed not worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment to the bank’s insured depositors.

Mrs. Sidi Ali, therefore, urged the public to continue their regular banking activities without concern, dismissing any false reports regarding the health of specific Deposit Money Banks.

She confirmed that the CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions.

While reiterating the assurances of the Governor,  Olayemi Cardoso that the recapitalisation of banks in Nigeria was intended to bolster the banking system and safeguard the sector against risks, Sidi Ali urged all stakeholders to cooperate in ensuring the success of the process, which she noted would be for the overall growth of the Nigerian economy.

“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

“Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system.”