There is no plan to revoke the licences of more Deposit Money Banks, DMBs, the Central Bank of Nigeria, CBN, has declared.
The declaration was made on Tuesday by the CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, in a statement issued in Abuja.
She said the declaration became necessary in view of the allegations in some quarters of plans to revoke the licences of Unity, Keystone and Polaris banks, following the withdrawal of the operating licence of Heritage Bank on Monday.
The statement reads in part: “The attention of the CBN has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday.
“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.
“The Nigerian financial system remains safe, sound, and resilient.
READ ALSO: FG to inaugurate Nedogas 300 MMscfd Kwale gas gathering facility
“Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).”
She said the apex bank was at that moment reviewing the plans.
She stated that in addition to enhancing buffers to withstand economic shocks, the proactive measure by the CBN to require CMNIBs to recapitalize, would result in increased capital for Nigeria’s bank.
That, according to her, would enable them to provide much-needed credit to critical sectors of the economy.
“This will increase the financial system’s contribution to the growth and development of a one trillion dollars Nigerian economy.
“The CBN will like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability.
“Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness,” she said.
It would be recalled that the CBN, on Monday, announced the revocation of Heritage Bank’s licence.
The revocation was said to be in line with the CBN’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act, BOFIA.
Source: NAN
