Just in: CBN Denies Plans to Revoke Bank Licenses, Reassures Public of Banking Stability

 

Yesterday, the Central Bank of Nigeria (CBN) dismissed rumors about the potential revocation of operating licenses for Fidelity Bank, Wema Bank, Polaris Bank, and Unity Bank. Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, clarified in a statement that these rumors were unfounded.

Mrs. Sidi Ali highlighted that a previous circular from January 10, 2024, concerning the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being misleadingly circulated as a recent directive from June 10, 2024. She attributed this misinformation to individuals intent on causing panic.

Reassuring the public, Mrs. Sidi Ali stated that depositors’ funds remain secure, and the banking system is resilient. She stressed that the isolated case of the defunct Heritage Bank should not be taken as indicative of the broader sector’s health. Customers of Heritage Bank were also assured of the safety of their deposits, with the Nigeria Deposit Insurance Corporation (NDIC) already initiating payment of the bank’s insured deposits.

Mrs. Sidi Ali encouraged the public to maintain their usual banking activities without fear and dismissed any false reports regarding the stability of specific Deposit Money Banks. She affirmed that the CBN’s robust regulatory framework ensures the stability of Nigeria’s financial system and the security of depositors’ funds across all Nigerian financial institutions.

Emphasizing the CBN’s commitment to the ongoing bank recapitalization process, Mrs. Sidi Ali reiterated the Governor Olayemi Cardoso’s assurances that these measures are designed to strengthen the banking system and protect it from risks. She called on all stakeholders to support the recapitalization efforts, noting their importance for the overall growth of Nigeria’s economy.

“The Nigerian banking industry remains resilient, with key financial soundness indicators within current regulatory thresholds. Customers should continue their transactions as usual, confident in the CBN’s commitment to maintaining a safe banking system,” she concluded.