NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has firmly denied allegations suggesting that it plans to revoke the licenses of three more banks following its recent regulatory action against Heritage Bank Plc.
In a press release dated June 4, 2024, signed by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, the CBN unequivocally stated that these claims are baseless and aimed at creating unnecessary panic within the financial sector.
The rumours emerged shortly after the CBN’s regulatory intervention with Heritage Bank Plc, leading to speculations about further actions against other banks. However, the CBN has assured the public that the Nigerian financial system remains robust and resilient.
The statement read: “The attention of the Central Bank of Nigeria (CBN) has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.
“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.”
The statement also disclosed that banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).
The CBN also noted that it has started reviewing the plans submitted by banks in the country, adding that its proactive recapitalization requirement aims to bolster the financial system’s buffers against economic shocks and enhance the banks’ capacity to support critical sectors of the economy.
A part of the statement read: “The Nigerian financial system remains safe, sound, and resilient. Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs). These plans are currently being reviewed by the Bank.
“In addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalize will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.
“The CBN would like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness.”
Meanwhile, NewsOnline Nigeria reported that the CBN yesterday revoked the banking licence of Heritage Bank Plc with immediate effect, citing the bank’s persistent financial instability and breach of regulatory requirements.
In a press release on Monday, the CBN disclosed that Heritage Bank had failed to adhere to Section 12 (1) of BOFIA 2020, which necessitated regulatory intervention.
Despite multiple supervisory measures prescribed by the CBN to mitigate the bank’s declining financial performance, Heritage Bank has been unable to improve its financial health.
The bank’s continuous underperformance poses a significant threat to financial stability, compelling the CBN to revoke its licence.
The Nigeria Deposit Insurance Corporation (NDIC) has started the liquidation process of Heritage Bank Plc following the revocation of its banking license by the CBN.
The Corporation noted that depositors are protected, as the NDIC is currently verifying to pay customers of the bank up to N5 million, depending on their deposits.
Petrol Marketers have predicted a further major drop in fuel prices from today across Nigeria.…
FG has moved to arraign all the suspected terrorists linked to the Bello Turji group.…
FG has declared 3 days of Public Holiday for Christmas and New Year Celebrations in…
Open Heaven 23 December 2024 RCCG Daily Devotional can be accessed below. NewsOnline Nigeria…
Black Market Dollar To Naira Exchange Rate in Lagos and FCT today, 23rd December 2024.…
PDP has knocked President Tinubu over a deadly stampede for food across states and FCT…