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CBN denies plan to revoke licences of Keystone, Polaris, Unity banks

Nigeria says FX inflows in Q1 represents 136% of 2023 level

The Central Bank of Nigeria (CBN) has refuted reports suggesting plans to revoke the licenses of Keystone bank, Polaris bank and Unity bank, following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.

In a press release signed by Hakama Sidi Ali, Acting Director, Corporate Communications on Tuesday, The bank stated that these allegations were false and intended to trigger panic in the financial system.

It disclosed that the banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with its circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).

“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.

“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 banks, enabling them to provide much-needed credit to critical sectors of the economy,” it stated.

The bank also stated that the move will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.

“The CBN would 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 apex bank had revoked the licence of Heritage Bank Plc, in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020 stating that the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

The move, according to CBN was aimed to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired