The Central Bank of Nigeria (CBN) has dismissed a report circulating that it plans to revoke the licences of additional banks, following its recent regulatory action against Heritage Bank Plc.
Online reports had claimed the apex bank would terminate the licences of Unity, Polaris, and Keystone banks.
However, CBN, in a statement on Tuesday through it spokesperson, Hakama Sidi Ali, called the allegations “false” and designed to “trigger panic in the financial system.”
It stated that the Nigerian financial system remains safe, sound, and resilient.
CBN added that banks have begun submitting implementation plans for the Banking Sector Recapitalization Programme in compliance with the CBN Circular.
The CBN noted that 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.
This, the CBN claims, will bolster the financial system’s role in propelling Nigeria’s growth towards a $1 trillion economy.
It, however, assured all stakeholders of its unwavering commitment to ensuring the financial system’s stability, stating that it will continue to take all necessary steps to maintain its safety and soundness.
The apex bank statement reads, “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.
“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. This 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.”
CBN statement comes after it revoked Heritage Bank’s licence with immediate effect on Monday, in accordance with its 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) 2020.
It added that the action is necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020, noting that the board and management of the bank have not been able to improve the bank’s financial performance, a situation that constitutes a threat to financial stability.
