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CBN makes fresh Clarification on License Revocation of Four Major Banks

The Central Bank of Nigeria (CBN) has denied plans to revoke the operating licenses of four major banks in the country – Fidelity, Polaris, Wema, and Unity Banks.

In a statement released on Monday, June 10, the CBN’s acting director of Corporate Communications, Hakama Sidi Ali, reassured the public of the safety of their deposits and the resilience of the banking system.

According to her, key financial soundness indicators remain within current regulatory thresholds.

Mrs. Sidi Ali addressed the misinterpretation of a January 10, 2024 circular announcing the dissolution of the Boards of Union, Keystone, and Polaris Banks, which is being misrepresented as a new directive. She clarified that this is an old notification and not a recent development.

The CBN spokesperson also dispelled rumours of further license revocations before the completion of the bank recapitalization exercise, labelling them unfounded and aimed at causing unnecessary panic.

“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient,” Mrs. Sidi Ali said.

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.

Mrs. Sidi Ali further encouraged the public to continue their regular banking activities without worry.

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