CBN Reassures Public on Safety of Depositors’ Funds

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The Central Bank of Nigeria (CBN) has reaffirmed the safety of depositors’ funds and the robustness of the banking system. This assurance was given by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, in a statement issued on Monday in Abuja.

Sidi-Ali’s statement addressed concerns about the stability of some Nigerian banks following the license revocation of Heritage Bank Plc. She dismissed claims that the CBN was considering revoking the operating licenses of Fidelity, Polaris, Wema, and Unity Banks.

She clarified that a circular issued by the CBN on January 10, 2024, regarding the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being wrongly circulated as a new development.

According to Sidi-Ali, the situation with Heritage Bank is an isolated case. “Allegations of further revocation of licenses prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system,” she stated.

She assured that customers of Heritage Bank, and other banks, need not worry about the safety of their deposits. The Nigeria Deposit Insurance Corporation (NDIC) has begun payments to insured depositors of Heritage Bank.

Sidi-Ali encouraged the public to continue their regular banking activities without fear, debunking false reports about the health of specific Deposit Money Banks. “The CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions,” she said.

She reiterated the assurances of the CBN Governor, Olayemi Cardoso, that the recapitalisation of banks in Nigeria aims to strengthen the banking system and safeguard it against risks. Sidi-Ali urged stakeholders to support the process for the overall growth of the Nigerian economy.

“Without prejudice to the ongoing recapitalisation 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 concluded.

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