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CBN Sacks Polaris, Union Bank, Keystone’s Managements, Boards

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The Central Bank of Nigeria (CBN) has announced the dissolution of the board and management of Union Bank, Keystone Bank, and Polaris Bank.

The decision, effective immediately, comes as a response to the banks’ non-compliance with various provisions outlined in the Banks and Other Financial Institutions Act, 2020.

According to a CBN press release issued on Monday, the infractions of these banks and their respective boards ranged from regulatory non-compliance to corporate governance failures.

Sidi Ali, Hakama, the Acting Director of Corporate Communications for the CBN who signed the statement, emphasized that the regulator remains committed to ensuring the safety and security of depositors’ funds.

The banks are also accused of disregarding the conditions under which their licenses were granted and engaging in activities deemed as threats to financial stability.

The statement reads, “This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020.

“The Bank’s infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that pose a threat to financial stability, among others.”

Reassuring the public, she affirmed the resilience and strength of Nigeria’s banking system despite the recent upheaval.

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