CBN breaks silence over reports to revoke Unity, Polaris, Keystone banks’ licences

In response to circulating online reports, the Central Bank of Nigeria (CBN) has firmly denied any plans to revoke the licenses of Unity Bank, Polaris Bank, and Keystone Bank.

The CBN labeled these reports as false, clarifying on its social media channels, “The content is fake and not from the CBN.”

This clarification follows recent claims suggesting that the apex bank would revoke the licenses of these three banks, similar to the action taken against Heritage Bank. However, the CBN’s statement reassures the public that there are no such plans in place.

Platinumpost reported on the revocation of Heritage Bank’s license due to its poor financial performance. According to the CBN, Heritage Bank’s management failed to improve its financial standing, posing a risk to financial stability. Consequently, the bank’s license was revoked.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability,” the CBN stated.

With no signs of recovery from Heritage Bank, the CBN deemed the license revocation necessary. The Nigeria Deposit Insurance Corporation has been appointed as the liquidator, per Section 12 (3) of the Banks and Other Financial Act 2020, and has commenced the process of repaying deposits to the bank’s customers.

The CBN’s swift denial of the false reports regarding Unity Bank, Polaris Bank, and Keystone Bank aims to maintain public confidence and ensure stability within the financial sector.