CBN Sacks Boards Of Union, Keystone, Polaris Banks - EDU-BIZNEWS


Wednesday, January 10, 2024

CBN Sacks Boards Of Union, Keystone, Polaris Banks

The Central Bank of Nigeria (CBN) has announced the official dissolution of the Board and Management of three notable commercial banks including Union Bank, Keystone Bank, and Polaris Bank.

Acting Director of Corporate Communications of CBN, Mrs Sidi Ali, Hakama announcing the dissolution in a statement  dated January 10, 2024 and obtained by Edu-Biznews,  explained that the action taken was a direct result of the banks’ non-compliance with critical regulatory provisions.

The apex bank cited several concerns leading to this decision, including regulatory non-compliance, failures in corporate governance, and involvement in activities threatening financial stability.

"The implicated provisions, Section 12(c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020, cover a range of regulatory and governance expectations"

“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.”she stated 

The CBN’s mandate according to the statement, is to ensure a safe, sound, and resilient banking environment for all Nigerians. In line with this responsibility, the CBN reassured the public that the safety and security of depositor funds remain a top priority.

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