The boards of Union Bank, Polaris Bank, Keystone Bank, and Titan Trust Bank have been dismissed by the Central Bank of Nigeria (CBN). In a statement, the CBN explained that this action was necessary due to the banks’ non-compliance with certain provisions of the Banks and Other Financial Institutions Act, 2020.
The infractions committed by the banks ranged from regulatory non-compliance to corporate governance failure and involvement in activities that posed a threat to financial stability.
The CBN reassured the public that depositors’ funds were safe and that it remained committed to maintaining a secure and robust financial system in Nigeria.
The bank executives were addressed by a panel consisting of three governors and the Deputy Governor in charge of Financial System Stability. The panel highlighted the non-compliance issues and other infractions before formally dismissing the boards.
This decision followed a report by the Special Investigator on the CBN and related entities, Jim Obazee. The investigator had previously invited the investors in Titan Trust Bank for a meeting, but they reportedly declined the invitation.
See the full statement below:
CBN Dissolves the Board and Management of Union Bank, Keystone Bank and Polaris Bank
The Central Bank of Nigeria (CBN) has dissolved the Board and Management 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 Bank’s infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses 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.
Sidi Ali, Hakama (Mrs.)
Ag. Director, Corporate Communications
