Amid fears among depositors about revocation of another bank operating license, the Central Bank of Nigeria (CBN) on Monday reassured the banking public, particularly depositors, of the safety of their monies in the banking system.
The CBN, through its spokesperson, Hakama Sidi-Ali, said bank customers have no reason to be afraid, as the country’s banking system was stable and resilient.
Coming in the wake of the recent revocation of the operating license of Heritage Bank Plc, Sidi-Ali faulted reports which claimed the CBN was considering similar actions against Fidelity, Polaris, Wema, and Unity banks.
The Acting Director of the Corporate Communications Department of the bank also gave clarification on a January 10, 2024 circular making the rounds in socials media on June 10, 2024 about the dissolution of the Boards of Union, Keystone, and Polaris banks.
While clarifying that the circular under reference was issued more than five months ago, Mrs. Sidi-Ali said the Heritage Bank’s case was isolated, as allegations of further revocation of licences prior to the completion of the bank recapitalization exercise were mere fabrications aimed at creating panic within the banking system.
“Bank customers, particularly those of Heritage Bank, need not worry about the safety of their deposits, as the Nigeria Deposit Insurance Corporation(NDIC) has commenced payment to the bank’s insured depositors,” she assured.
Urging the public to continue with their regular banking activities without concern, Mrs. Sidi-Ali dismissed as false reports regarding the health of specific Deposit Money Banks.
With CBN’s robust regulatory framework, she confirmed that the apex bank was proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions.
Restating the CBN Governor, Olayemi Cardoso’s reassurance that the recapitalization of banks in the country was intended to strengthen the banking system and safeguard the sector against risks, Sidi-Ali urged all stakeholders to cooperate towards ensuring the success of the exercise, for the overall growth of the Nigerian economy.
“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds. Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she added.
