CBN sacks Boards of Union, Polaris and Keystone bank

David OputahJanuary 11, 20242 min

CBN has announced the dissolution of the boards of Union Bank, Keystone Bank, and Polaris Bank due to infractions.

CBN and POS operators
CBN Governor, Yemi Cardoso

The Central Bank of Nigeria (CBN) has announced the dissolution of the boards and managements of Union Bank of Nigeria, Keystone Bank, and Polaris Bank over alleged corporate governance infractions and non-compliance with regulatory requirements.

The announcement comes barely three weeks after the Special Investigator on the CBN and Related Entities, Jim Obazee, submitted its final report to President Bola Tinubu and the sacking of the boards of the banks is reportedly part of the implementation of the report of the special investigator.

In a statement by the acting Director, Corporate Communications, CBN, Sidi Hakama, announcing the sacking of the boards of the banks on Wednesday, the apex bank said the affected banks’ alleged infractions varied from regulatory non-compliance, corporate governance failure, disregarding of the conditions under which their licences were granted, and involvement in activities that posed a threat to financial stability, among others.

It added that the dissolution of the boards became necessary due to the non-compliance of the banks and their respective boards with the provisions of the Bank and Other Financial Institutions Act, 2020.

See the CBN statement below:

The Central Bank of Nigeria has dissolved the boards and managements of Union Bank, Keystone Bank, and Polaris Bank.

This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020. The banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licences were granted, and involvement in activities that pose a threat to financial stability, among others.

The CBN assures the public of the safety and security of depositors’ funds and remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria. Our banking system remains strong and resilient.

David Oputah

Oputah David M is a Bloomberg-trained Journalist with a diversified experience in online journalism and newsroom management. He is a 2023 MTN Media Innovation fellow!

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