Again, CBN Reassures on Safety of Banking System, Depositors’ Funds

James Emejo in Abuja

The Central Bank of Nigeria (CBN) yesterday reaffirmed its assurance to the banking public that their deposits remained safe amid a resilient industry.

CBN acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, gave the assurance for the umpteenth time in a statement – amid unfounded concerns about the stability of some Nigerian banks, especially in the wake of Heritage Bank Plc’s license revocation recently by the apex bank.

She faulted claims that the CBN was considering revoking the operating licenses of Fidelity, Polaris, Wema, and Unity Banks’

Sidi Alli also clarified that a circular issued by the bank on January 10, 2024, notifying the public about the dissolution of the boards of Union, Keystone, and Polaris Banks – was circulated as though it was issued on June 10, 2024.

The CBN acting director insisted that the defunct Heritage’s case was isolated, adding that allegations of further revocation of licenses before the completion of the ongoing banking industry recapitalisation exercise were mere fabrications aimed at creating panic within the system.

She said customers, particularly those of Heritage Bank, needed not to worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment to the bank’s insured depositors.

She, therefore urged the public to continue their regular banking activities without concern, dismissing any false reports regarding the health of specific Deposit Money Banks (DMBs) in the country.

She stressed that the central bank, with its robust regulatory framework, was proactively ensuring the stability of Nigeria’s financial system, and guaranteeing the safety of depositors’ funds in all banking institutions.

The statement further reiterated the assurances of the CBN Governor, Mr. Olayemi Cardoso that the recapitalisation of banks was intended to bolster the banking system and safeguard the sector against risks.

Sidi Ali urged all stakeholders to cooperate in ensuring the success of the process, which she noted would be for the overall growth of the Nigerian economy.

She added, “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.”