There Are No Plans To Remove The Licenses Of More Banks, CBN

Tinubu Orders Osayande To Investigate CBN, Related Affairs

According to the Central Bank of Nigeria (CBN), there are no plans to cancel any additional Deposit Money Banks’ (DMBs’) licenses.

This was said in a statement released in Abuja on Tuesday by Mrs. Hakama Sidi-Ali, the acting director of corporate communications at Apex Bank.

In reaction to reports in certain places that there were intentions to cancel the licenses of Unity, Keystone, and Polaris banks after Heritage Bank withdrew its operating license on Monday, Sidi-Ali made a statement.

The CBN’s attention has been attracted to certain information that is circulating in the public domain and indicates that, as a result of its regulatory action against Heritage Bank Plc on Monday, the CBN plans to revoke the licenses of three other banks.

“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. She said that the plans were currently being reviewed by the apex bank.

According to her, in addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalize, will result in increased capital for Nigeria’s bank.

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.

The News Agency reports that the CBN announced on Monday the revocation of the license of Heritage Bank Plc with immediate effect.

It said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA).

It said that the board and management of the bank had not been able to improve the bank’s financial performance, a situation that constituted a threat to financial stability.

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