CBN Speaks on Revoking Licenses of 2 More Banks, NDIC Begins Prosecution of Heritage Bank Directors

The Central Bank of Nigeria (CBN) has refuted claims circulating on social media that it has revoked the licenses of Unity Bank and Keystone Bank. The supposed memo, which urged customers to withdraw their funds from these banks before it was “too late,” has been dismissed by the CBN as fake news.

The misleading circular stated:
“CBN has withdrawn the licenses of Heritage Bank, Unity Bank, and Keystone Bank respectively. All the customers affected should try to withdraw all their money using an ATM card or transfer all the money to another bank now before it is too late. Please let’s circulate this information to our colleagues, family and friends. Let’s be of help to others.”

Contrary to this claim, the CBN took to its official X page to clarify that no such circular had been issued by the apex bank. They emphasized that the information was false and designed to deceive the public. This statement was released in response to growing concerns and confusion among the customers of the mentioned banks.

On June 3, 2024, the CBN did announce the revocation of Heritage Bank’s license and appointed the Nigeria Deposit Insurance Corporation (NDIC) as the bank’s liquidator. This decision was based on Heritage Bank’s inability to improve its financial performance despite repeated interventions. The CBN’s action aimed to safeguard the interests of depositors and maintain the stability of the banking sector.

Following the revocation of Heritage Bank’s license, rumors began to spread that the CBN would also terminate the licenses of Unity Bank, Polaris Bank, and Keystone Bank. However, the CBN has categorically stated that these rumors are unfounded. The apex bank reassured the public that it has no plans to revoke the licenses of any other banks at this time.

In a statement, the CBN reiterated its commitment to ensuring the stability and soundness of the Nigerian banking system. The bank emphasized that the financial system remains robust and depositors’ funds are secure. The CBN continues to monitor the health of all banks in the country and will take necessary actions to protect the interests of the banking public.

The NDIC, now acting as the liquidator for Heritage Bank, has commenced legal proceedings against the directors of the bank. The prosecution aims to hold the directors accountable for the financial issues that led to the revocation of the bank’s license. This move is part of broader efforts by the CBN and NDIC to enforce accountability and ensure that banks operate within the regulatory framework designed to maintain financial stability.

The CBN’s proactive stance in addressing the false claims and clarifying the situation reflects its ongoing efforts to maintain transparency and trust within the financial system. By promptly debunking the fake circular and reassuring the public, the CBN aims to prevent panic withdrawals and ensure confidence in the banking sector.

In conclusion, the CBN has made it clear that the licenses of Unity Bank and Keystone Bank have not been revoked. The false memo circulating on social media is intended to mislead the public and create unnecessary panic. The CBN continues to monitor the financial health of all banks and remains committed to protecting the interests of depositors and maintaining the stability of the banking system.