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…Says DMBs safe, sound
The Central Bank of Nigeria (CBN) has debunked various online reports suggesting that it was on the verge of withdrawing the operational licences of three deposit money banks in its efforts to weed out the weak bunch in the polity.
The regulator described the report as fake news designed to overheat the polity and distort the finance sector.
Mrs Hakama Sidi Ali, the Spokesperson of the CBN, while asking the public to totally disregard the reports, said nothing of such was on the cards.
She said: “The attention of the 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 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” Ali stated.
