CBN Takes Decisive Action: Dissolves Boards of Union, Keystone, Polaris, and Titan Banks.
The Central Bank of Nigeria (CBN) has taken decisive action by dissolving the boards of Union Bank, Polaris Bank, Keystone Bank, and Titan Trust Bank.
The apex bank, through a statement signed by Acting Director of Corporate Communications, Sidi Hakama, cited non-compliance with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020, as the primary reason for this action.
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The CBN outlined various infractions committed by these banks, ranging from regulatory non-compliance and corporate governance failure to disregarding the conditions under which their licenses were granted.
Additionally, their involvement in activities posing a threat to financial stability played a pivotal role in the decision.
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During a meeting on Wednesday, January 10, the boards of directors and chief executives of the banks were individually addressed for 30 minutes each by a panel comprising the CBN’s Deputy Governor in charge of Financial System Stability, Phillip Ikeazor, along with three other governors.
This panel highlighted the specific issues of non-compliance and other infractions before formally announcing the dissolution of the boards.
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The dissolution follows a recent report from the Special Investigator on the Central Bank of Nigeria (CBN) and related entities, Jim Obazee. Investors in Titan Trust Bank were reportedly invited to a meeting by the special investigator, appointed by President Bola Tinubu, but they declined to attend.
In light of these developments, the CBN reassured the public of the safety and security of depositors’ funds, emphasizing its commitment to upholding a safe, sound, and robust financial system in Nigeria.
The banking system is asserted to remain strong and resilient amidst these changes.
Sidi Ali Hakama (Mrs.),
Acting Director, Corporate Communications
