The Central Bank of Nigeria (CBN) has taken decisive action by dissolving the Board and Management of Union Bank, Keystone Bank, and Polaris Bank. This move comes in response to the non-compliance of these banks and their respective boards with the provisions outlined in Section 12(c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
The infractions committed by these banks span regulatory non-compliance, corporate governance failures, disregard for the conditions under which their licenses were granted, and involvement in activities posing a threat to financial stability, among other issues. The CBN deems such actions as serious violations that necessitate intervention to safeguard the integrity of the financial system.
The dissolution underscores the CBN’s commitment to maintaining a robust and resilient financial system in Nigeria. By taking swift and decisive measures against institutions failing to adhere to regulatory standards, the CBN aims to protect the interests of depositors and ensure the safety and security of their funds.
In a statement signed by Sidi Ali, Hakama (Mrs.) Ag. Director, Corporate Communications, the CBN assured the public of the soundness of the banking system, emphasizing that depositors’ funds remain safe. The central bank remains resolute in fulfilling its mandate to uphold a secure, sound, and robust financial environment in Nigeria.
This move is indicative of the regulatory authority’s commitment to enforcing compliance and maintaining the stability of the banking sector. As the financial landscape evolves, regulatory vigilance is crucial to address challenges promptly and sustain the integrity of the financial system. The CBN’s actions serve as a reminder of the importance of adherence to regulations and corporate governance standards within the banking industry.
