CBN Sends Message to Nigerians, Clears Status of Union Bank, Polaris, Keystone, Others
- The CBN has once again assured the banking public of the security of their money and the tenacity of the banking system
- CBN's acting director of the corporate communications department said it is not true the bank is planning further license revocation
- This came after a rumour that the CBN is cancelling the operating licenses of Fidelity, Polaris, Wema, and Unity Banks
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) has once again reassured the banking public of the safety of their deposits and the resilience of the banking system.
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It stated this in response to accusations made in some quarters regarding the soundness of some Nigerian banks following the termination of Heritage Bank Plc's license.
CBN refutes rumour
The acting director of the apex bank's corporate communications department, Hakama Sidi Ali, refuted rumours that the regulator was considering cancelling the operating licenses of Fidelity, Polaris, Wema, and Unity Banks in a conversation with New Telegraph on Monday, June 10.
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She further explained that a circular that the bank released on January 10, 2024, informing the public of the Union, Keystone, and Polaris Banks Boards' dissolution, is presently being distributed under the false pretences of being published on June 10, 2024.
Sidi Ali emphasised that Heritage's case was unique and said that reports of further licenses being revoked before the bank recapitalisation process was finished were merely lies meant to incite fear in the system.
NDIC commences payment to Heritage Bank customers
Sidi Ali said that the Nigeria Deposit Insurance Corporation (NDIC) had started paying out to the bank's insured depositors, so clients, especially those of Heritage Bank, should not be concerned about the security of their money.
Therefore, she dismissed any misleading allegations about the state of certain Deposit Money Banks and encouraged the people to continue their regular banking transactions without concern.
She reaffirmed that the CBN is actively maintaining the stability of Nigeria's financial system through its robust regulatory framework, safeguarding the security of depositor money in all Nigerian financial institutions.
Sidi Ali emphasised that the success of the process would be crucial for the expansion of the Nigerian economy as a whole while restating the guarantees of CBN Governor Olayemi Cardoso that the recapitalisation of Nigerian banks was meant to strengthen the banking system and protect the industry against risks.
She added:
“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.
“Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the banking system's safety."
NDIC goes after Heritage Bank loan defaulters
Legit.ng reported that the NDIC, which is in charge of pursuing the loan defaulters at Heritage Bank, who owe the bank a total of N700 billion, has made intentions to do so public.
Bello Hassan, the managing director of NDIC, made this statement during a news conference in Abuja on Wednesday, June 5, 2024.
The NDIC promised to distribute protected savings to depositors of the now-defunct Heritage Bank, particularly those with accounts holding N5 million or less, in its capacity as the liquidator designated by the Central Bank of Nigeria.
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Source: Legit.ng
