- Says Allegations False, Intended To Trigger Panic In The Financial System
Amid skepticism and worries about the financial health of some other banks in the country, the Central Bank of Nigeria has debunked reports of plans to withdraw the licenses of three banks in the country.
Anxiety and apprehension were triggered on Monday June 3, 2024 when the apex bank revoked the operating license of Heritage Bank, a few months after assuring Nigerians that Nigerian banks are in sound financial health.
On June 3, 2024 the apex bank revoked the banking licence of Heritage Bank citing the bank’s inability to improve its financial performance.
Shortly after that, reports emerged that Unity Bank, Polaris Bank and Keystone Bank might be next.
READ ALSO: Heritage Bank Collapse: Peter Obi Calls For Prompt Payment Of Depositors’ Funds
However, the apex bank has now come out to douse the tension saying there are no plans to withdraw the licenses of the three banks.
“The attention of the Central Bank of Nigeria (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, June 3, 2024.
“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 CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs). These plans are currently being reviewed by the Bank” a press statement by the bank’s Acting Director of Corporate Communications, Haka Sidi-Ali, said.
The statement added that in addition to enhancing buffers to withstand economic shocks, the proactive measure by the CBN to require commercial banks to recapitalise will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy.
The expected outcome, according to the apex bank, will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.
READ ALSO: Heritage Bank Depositors To Get Maximum Of N5m On Deposits- NDIC
The CBN also assured Nigerians of its unwavering commitment to ensuring the financial system’s stability.
