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Union Bank of Nigeria has reaffirmed the safety of customer deposits and the stability of its operations following recent comments by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, regarding financial institutions currently under regulatory oversight.
In a statement issued on Wednesday, the bank noted that the Governor’s remarks align with its prior communications to stakeholders, stressing that Union Bank remains operationally sound and continues to function within the established regulatory framework.
CBN Signals Differentiated Recapitalisation Approach
At the conclusion of the latest Monetary Policy Committee (MPC) meeting, Cardoso clarified that banks under regulatory intervention face distinct structural and legal considerations that affect the sequencing of their recapitalisation plans.
He explained that such institutions cannot reasonably be expected to follow the same timeline as banks that have had extended preparation periods since the recapitalisation policy was first announced. The CBN, he added, remains actively engaged with relevant stakeholders to ensure orderly and credible outcomes while safeguarding financial system stability.
“Customer Deposits Are Safe” – Union Bank
Responding to the development, Union Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, reiterated the bank’s position that it remains under strong supervisory oversight with uninterrupted service delivery across all channels.
She emphasised that Union Bank is a going concern with a resilient franchise and stable operations, maintaining that all customer deposits are safe and secure.
According to her, the institution continues to work transparently and constructively with the CBN toward full compliance under the recapitalisation framework. She added that regulatory engagement is critical to preserving financial stability and assured stakeholders that updates would be provided as engagements progress.
Background to Regulatory Oversight
In January 2024, the CBN dissolved the boards of Union Bank, Keystone Bank and Polaris Bank over regulatory infractions, including corporate governance failures and non-compliance with licensing conditions. The apex bank stated at the time that the actions were necessary to protect financial stability.
Meanwhile, Cardoso disclosed that 20 banks have fully met the new minimum capital requirements, with an additional 13 at advanced stages of compliance.
Under the revised capital framework announced in March 2024, banks with international licences are required to raise their minimum paid-up capital to N500 billion, while those with national licences must meet a N200 billion threshold by March 31, 2026.
Regional commercial and merchant banks are expected to maintain a minimum capital base of N50 billion, while non-interest banks must hold N20 billion for national licences and N10 billion for regional licences.
Commitment to Stability and Continuity
Union Bank’s latest reassurance underscores its commitment to operational continuity, depositor protection, and constructive regulatory engagement as the recapitalisation process advances.
As the CBN continues supervisory oversight of affected institutions, the emphasis remains on ensuring financial system stability while facilitating compliance within the evolving regulatory framework.
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