CBN reassures public on banking system stability amid concerns

The Central Bank of Nigeria (CBN) has reiterated the safety of deposits and the resilience of the banking system in response to recent concerns.

Acting Director of the Corporate Communications Department, Hakama Sidi-Ali, issued a statement addressing worries over banking stability following the license revocation of Heritage Bank Plc.

Sidi-Ali clarified that claims about potential license revocations of Fidelity, Polaris, Wema, and Unity Banks are unfounded.

She highlighted that a circular issued on January 10, 2024, regarding the dissolution of the Boards of Union, Keystone, and Polaris Banks, is being misrepresented as current.

Regarding Heritage Bank, Sidi-Ali stressed that its situation is isolated, dismissing rumours of further license revocations before the completion of the CBN’s recapitalization exercise as baseless.

Assuring customers, particularly those of Heritage Bank, she noted that the Nigeria Deposit Insurance Corporation (NDIC) has begun payments to insured depositors, emphasizing that regular banking activities can continue without fear.

Sidi-Ali reaffirmed Governor Olayemi Cardoso’s assurances that the recapitalization aims to strengthen the banking system and protect it from risks. She urged stakeholders to support the process for Nigeria’s economic growth, emphasizing the industry’s resilience and the CBN’s commitment to ensuring banking system safety.