ICYMI

June 5, 2024

No plans to revoke licences of more banks — CBN

No plans to revoke licences of more banks — CBN

The Central Bank of Nigeria (CBN) says it has no plan to revoke the licences of more Deposit Money Banks (DMBs).

The Acting Director, Corporate Communications of the apex bank, Mrs Hakama Sidi-Ali, said this in a statement on Tuesday in Abuja.

Sidi-Ali’s statement was a response to allegations in some quarters of plans to revoke the licences of Unity, Keystone and Polaris banks, following the withdrawal of the operating licence of Heritage Bank on Monday.

“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.

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.

Recall that the CBN had, on Monday, announced revocation of the licence 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 which constituted a threat to financial stability.

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