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Mere Rumours:  CBN Says No Plan to Revoke Unity, Polaris, Keystone Licences

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In response to online reports suggesting the potential revocation of banking licences of Unity, Polaris, and Keystone banks, the Central Bank of Nigeria (CBN) has firmly stated that it has no such plans. The apex bank clarified the situation, emphasizing that the content circulating online is false and unauthorized.

“The content is fake and not from the CBN,” the bank asserted in a post on its official social media pages on Tuesday, addressing the misinformation regarding the status of the three banks.

The clarification comes amidst speculations sparked by the recent revocation of Heritage Bank’s banking license by the CBN on June 4. The decision to revoke Heritage Bank’s license was attributed to the bank’s inability to improve its financial performance, posing a threat to financial stability, according to the CBN.

“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 regarding the rationale behind Heritage Bank’s license revocation.

With Heritage Bank deemed to have no reasonable prospects of recovery, the CBN announced the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank in in line with the provisions of Section 12(3) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Heritage Bank, a once-promising financial institution with deep historical roots and a substantial presence across the nation, struggled before the CBN wielded the big stick on Monday.

In the statement announcing the revocation, the bank said, “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. 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.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.”

The CBN emphasised that the bank’s inability to turn around its fortunes presented a growing threat to the stability of Nigeria’s financial system, leaving the CBN with no choice but to take decisive action.

“Consequently, the revocation of the license was necessary to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired,” the statement said.

Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in accordance with Section 12 (2) of BOFIA 2020.

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