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No plan to liquidate more banks – CBN assures depositors

THE Central Bank of Nigeria (CBN) has reassured the banking public of the safety of their deposits and the resilience of the banking sector, following concerns raised in some quarters regarding the stability of some Nigerian banks following Heritage Bank Plc’s licence revocation.

The Bank’s Acting Director of the Corporate Communications Department, Hakama Sidi Ali, denied yesterday that contrary to certain rumours, that the CBN was considering withdrawing Fidelity, Polaris, Wema, and Unity Banks’ operating licences.

She further highlighted that a circular published by the bank on January 10, 2024, informing the public of the dissolution of the Boards of Union, Keystone, and Polaris Banks, is now being circulated as if it were issued on June 10, 2024.

In an interview with reporters, Sidi Ali stressed that Heritage’s case was unique, and that allegations of additional licence revocation prior to the completion of the bank recapitalization exercise were just fabrications intended to cause panic in the system.

She stated that clients, particularly those of Heritage Bank, should not be concerned about the safety of their deposits, and that the Nigeria Deposit Insurance Corporation (NDIC) has begun paying the bank’s insured depositors.

Sidi Ali asked the public to continue their normal banking activities without fear, ignoring any misleading reports about the soundness of specific Deposit Money Banks.

She stated that the CBN, through its comprehensive regulatory framework, is actively ensuring the stability of Nigeria’s financial system, thereby ensuring the safety of depositors’ funds in all Nigerian banks.

While reaffirming Governor Olayemi Cardoso’s guarantee that bank recapitalisation in Nigeria was meant to strengthen the banking system and protect the industry from threats.

Sidi Ali asked all parties to work together to ensure the process’s success, which she said would benefit the Nigerian economy as a whole.

“Without prejudice to the ongoing recapitalisation process, I would want to reiterate that the Nigerian banking industry is resilient. Key financial soundness indices remain within the present regulatory limits.

“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 safety of the banking system,” she added.

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