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CBN refutes allegations of three additional banks license withdrawals

CBN Headquarters

By Tochukwu Bliss, Abuja

The Central Bank of Nigeria (CBN) yesterday denied reports that it is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday.

In a statement by the Ag. Director, Corporate Communications, Hakama Ali, the CBN unequivocally said: “these allegations are false and intended to trigger panic in the financial system. The Nigerian financial system remains safe, sound, and resilient.”

It added that “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),” which it said are currently being reviewed.

The statement reads further: “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.”

While reassuring all stakeholders of its unwavering commitment to ensuring the financial system’s stability, the apex bank reiterated that “Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness.

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.

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