Modupe Gbadeyanka
By Modupe Gbadeyanka
The boards and managements of Keystone Bank, Polaris Bank and Union Bank have been removed by the Central Bank of Nigeria (CBN).
A statement signed by the Acting Director for Corporate Communications at the CBN, Mrs Sidi Ali Hakama, said the action was taken over the banks’ violation of sections of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Recall that the acquisition of Union Bank of Nigeria by Titan Trust Bank raised eyebrows, with some alleging that the embattled former Governor of the CBN, Mr Godwin Emefiele, sold the lender to a proxy.
There had been speculations that the bank would be nationalised by the central bank before now.
In the statement issued on Wednesday night, Mrs Hakama said, “The Central Bank of Nigeria (CBN) 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 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.
“The CBN assures the public of the safety and security of depositors’ funds and remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria. Our Banking system remains strong and resilient.”
