The Central Bank of Nigeria (CBN) has firmly denied allegations suggesting that it plans to revoke the licenses of three more banks following its recent regulatory action against Heritage Bank Plc.
In a press release dated June 4, 2024, signed by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, the CBN unequivocally stated that these claims are baseless and aimed at creating unnecessary panic within the financial sector.
The rumours emerged shortly after the CBN’s regulatory intervention with Heritage Bank Plc, leading to speculations about further actions against other banks. However, the CBN has assured the public that the Nigerian financial system remains robust and resilient.
The statement read: “The attention of the Central Bank of Nigeria (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.”
Bank submitting implementation plans for recapitalisation
The statement also disclosed that 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).
The CBN also noted that it has started reviewing the plans submitted by banks in the country, adding that its proactive recapitalization requirement aims to bolster the financial system’s buffers against economic shocks and enhance the banks’ capacity to support critical sectors of the economy.
A part of the statement read: “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.”
