CBN Disolves Some Bank Boards Due to Infractions

[Amazin Zion]

Due to infractions, the Central Bank of Nigeria has dissolved the Union Bank of Nigeria, Keystone Bank, and Polaris Bank boards.

This was made public on Wednesday in a statement signed by the acting Director of Corporate Communications, Sidi Hakama, who stated that the action became necessary as the activities of these heads posed a threat to financial stability.

He said,

• The Central Bank of Nigeria has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank.
• 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 the 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 licences were granted, and involvement in activities that pose a threat to financial stability, among others.

The apex bank has assured the public of the safety and security of depositors funds while saying it remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria while maintaining,
“Our Banking system remains strong and resilient.”

Section 12 of the BOFIA 20220, quoted by the apex bank as the basis for the dissolutions of the board, deals with the revocation of a banking licence and the conditions under which it can happen.

Read more: https://www.investingport.com/cbn-disolves-some-bank-boards-due-to-infractions/