CBN justifies dissolution of Union, Keystone and Polaris Banks’ board

CBN justifies dissolution of Union, Keystone and Polaris Banks’ board

The Central Bank of Nigeria (CBN) has said it dissolved the boards and managements of Union Bank Limited, Keystone Bank Limited and Polaris Bank Limited for infractions against statutory rules which poses a threat to the banking industry.

In a statement on Wednesday, signed by its Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, the CBN said the action became necessary following the failure by the affected banks and their respective boards to abide by the stipulated rules.

The statement reads:

“CBN Dissolves 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 banks’ 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,”.

THEWILL had exclusively reported over the weekend that the Federal Government would be sacking the boards of Union Bank and Titan Trust Bank during the week.

This followed the recent report of the Special Investigator on Central Bank of Nigeria (CBN) and Related entities, Jim Obazee.

National Periscope reliably gathered that the CBN’s action was communicated to the banks’ top leadership at a meeting led by the CBN Governor, Dr Yemi Cardoso, in Abuja on Wednesday.

Three other governors formed the panel that addressed the bank executives.

They include the Deputy Governor in charge of Operations, Emem Usoro, the Deputy Governor in charge of Economic Policy, Muhammad Abdullahi and the Deputy Governor in charge of Corporate Services, Bala Bello.

The panel reportedly reeled out issues of non-compliance and other infractions committed by the affected banks and then formally sacked the boards.

Earlier, the investors in Titan Trust Bank reportedly failed to honour the invitation to a meeting with the Special Investigator.