CBN Debunks Rumors of License Revocation for Fidelity, Polaris, Wema, Unity Banks


Jun 10, 2024

The Central Bank of Nigeria (CBN) has refuted allegations that it is contemplating the revocation of operating licenses for Fidelity, Polaris, Wema, and Unity Banks.

This was revealed In a statement released on Monday, by the acting director of the Corporate Communications Department of the CBN, Hakama Sidi Ali, reassured the public of the safety of their deposits and the resilience of the banking system.

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

She addressed the misinformation circulating regarding a circular issued on January 10, 2024, which announced the dissolution of the Boards of Union, Keystone, and Polaris Banks. This circular is being misrepresented as a new directive issued on June 10, 2024. Mrs. Sidi Ali clarified that this is an old notification and not a recent development.

“The case of Heritage Bank is isolated,” she stated, adding that allegations of further license revocations before the completion of the bank recapitalization exercise are unfounded and aimed at causing unnecessary panic. She urged customers, especially those of Heritage Bank, not to worry about the safety of their deposits, as the Nigeria Deposit Insurance Corporation (NDIC) has already begun payments to the bank’s insured depositors.

Reiterating the CBN’s commitment to financial stability, Mrs. Sidi Ali encouraged the public to continue their regular banking activities without worry. “Customers are encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she said. She also highlighted the robust regulatory framework of the CBN, which proactively ensures the stability of Nigeria’s financial system, guaranteeing the safety of depositors’ funds across all Nigerian financial institutions.

Mrs. Sidi Ali noted the assurances of the CBN Governor, Olayemi Cardoso, about the ongoing recapitalization process designed to strengthen the banking system and protect 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 said. She called on all stakeholders to support the recapitalization initiative, which she believes is crucial for the overall growth of the Nigerian economy.

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