On Wednesday, January 10, the Central Bank of Nigeria (CBN) disbanded the boards of Union, Keystone, and Polaris Banks in a major step towards guaranteeing the stability and compliance of the banking industry.
This judgment was made in reaction to the banks’ failure to abide by Sections 12(c), (f), (g), and (h) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which was thought to be potentially dangerous for the system’s financial stability.
In an official statement released, the apex bank outlined the reasons behind the dissolution and subsequently announced the appointment of new executives to lead the three financial institutions.
Union Bank: The newly appointed executives for Union Bank are Yetunde Oni, who assumes the position of Managing Director/Chief Executive Officer, and Mannir Ubali Ringim, appointed as Executive Director. The CBN emphasizes that these changes are effective immediately.
Keystone Bank: Hassan Imam has been appointed as the Managing Director/Chief Executive of Keystone Bank, while Chioma Mang takes on the role of Executive Director. These appointments are part of the CBN’s swift action to address concerns and ensure the smooth functioning of Keystone Bank.
Polaris Bank: Lawal Mudathir Omokayode Akintola is appointed as the Managing Director/Chief Executive of Polaris Bank, accompanied by Chris Onyeka Officer as the Executive Director. These changes, mandated by the CBN, are implemented with immediate effect.
Despite these adjustments, the CBN assures 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 central bank maintains that Nigeria’s banking system remains strong and resilient, even as it takes proactive measures to address potential threats and ensure regulatory compliance.
This development is anticipated to have a notable impact on the banking sector, as the newly appointed executives take on the responsibility of steering the respective banks toward compliance and financial stability by the regulatory framework. The CBN remains vigilant in its oversight role, safeguarding the integrity of the financial system a fostering confidence among stakeholders