Nigeria: CBN Reassures Public on Stability of Nigerian Banks Amid Rumors

CBN Reassures Public on Stability of Nigerian Banks Amid Rumors
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The Central Bank of Nigeria (CBN) has dismissed rumors suggesting plans to revoke the operating licenses of Fidelity, Polaris, Wema, and Unity Banks, aiming to allay concerns about the stability of the banking sector.

In a statement released yesterday, Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department of the CBN, reaffirmed the safety of deposits and the resilience of Nigeria’s banking system.

“The Nigerian banking industry remains resilient, with key financial soundness indicators well within current regulatory thresholds,” Mrs. Sidi Ali stated.

She clarified misconceptions surrounding a circular issued on January 10, 2024, announcing the dissolution of the Boards of Union, Keystone, and Polaris Banks. Mrs. Sidi Ali emphasized that this circular is an old notification and not a recent directive issued on June 10, 2024.

Regarding Heritage Bank’s license revocation, Mrs. Sidi Ali stated it as an isolated incident, urging against speculations of further revocations before the completion of the bank recapitalization exercise.

Customers, especially those of Heritage Bank, were assured about the safety of their deposits, with the Nigeria Deposit Insurance Corporation (NDIC) already initiating payments to the bank’s insured depositors.

Mrs. Sidi Ali reiterated the CBN’s dedication to financial stability, encouraging the public to continue their banking activities without concern. “Customers are encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she reassured.

She highlighted the robust regulatory framework of the CBN, which proactively ensures stability across Nigeria’s financial institutions, safeguarding depositors’ funds.

Mrs. Sidi Ali referenced CBN Governor Olayemi Cardoso’s assurances on the ongoing recapitalization process aimed at strengthening the banking system and shielding it from potential risks.

“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient,” Mrs. Sidi Ali emphasized, urging all stakeholders to support the recapitalization initiative for the overall growth of the Nigerian economy.

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