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Tsunami hits banking sector

•CBN sacks boards of Union, Keystone, Polaris banks

The Central Bank of Nigeria (CBN), on Wednesday, announced the immediate dissolution of the board and management of Union, Keystone and Polaris Banks.

The regulator, in a statement, said the action became necessary due to the non-compliance of the listed banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020.

“The Banks’ 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”, the apex bank’s acting Director, Corporate Communications, Mrs Sidi Ali Hakama said in a statement.

She assured the public of the safety and security of their funds and remained resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria.

“Our Banking system remains strong and resilient”, she added.

Industry sources are linking the regulator’s hammer to the outcome of a recent report submitted by the Special investigator probing the activities of the CBN under Godwin Emefiele as Governor.

The investigator, Jim Obazee said that some banks were acquired without due process.

Meanwhile, it was gathered that the boards and Chief executives of the respective banks were invited to a meeting that started at about 1pm on Wednesday where they were addressed for 30 minutes each by the apex bank’s Deputy Governor Financial System Stability, Phillip ikeazor, alongside three other Deputy Governors, Emem Usoro, Muhammad Dattijo and Bala Bello.

At the meeting, the CBN reeled out issues of non-compliance and other infractions committed by the affected banks and then formally dissolve the boards.

Sources said new boards and executive management would be appointed soon.


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