CBN Says No Plans to Revoke Additional Banking Licences
Following the recent revocation of the operating license of Heritage Bank Plc, the Central Bank of Nigeria (CBN) yesterday clarified that there were currently no further plans to withdrawal additional banking license as insinuated in some quarters. The central bank’s clarification came against the backdrop of some information circulating in the public domain, suggesting that the apex regulatory institution was set to revoke the licenses of three additional banks. In a statement, CBN acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, described the allegations as false and intended to trigger panic in the financial system. She maintained that the Nigerian financial system remained safe, sound, and resilient, adding that the ongoing recapitalisation of the industry would boost capital injection among others. She said, “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 recapitalise will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy.”
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