Central Bank Dissolves Boards and Management of Union Bank, Keystone Bank and Polaris Bank

The Board and Management of Union Bank, Keystone Bank, and Polaris Bank have been dissolved by the Central Bank of Nigeria (CBN). The dissolution is contained in a press release made by the CBN on Wednesday January 10 and signed by Mrs. Sidi Hakama, Ag Director of Corporate Communications at the CBN

The decision to dissolve the Board and Management of Union Bank, Keystone Bank, and Polaris Bank by the Central Bank of Nigeria (CBN) was made due to their failure to comply with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020. These banks were found to have committed various infractions, including regulatory non-compliance, corporate governance failure, disregarding the conditions of their licenses, and engaging in activities that posed a threat to financial stability.

Despite this action, the CBN assures the public that depositors’ funds are safe and secure. The CBN remains dedicated to its mandate of maintaining a safe, sound, and strong financial system in Nigeria. The banking system in the country is described as resilient and robust, indicating that it is capable of withstanding challenges and ensuring the stability of the financial sector.

By dissolving the Board and Management of these banks, the CBN aims to address the issues of non-compliance and governance failure, ensuring that the banks operate in accordance with the regulations and conditions set by the regulatory authority. This action serves as a reminder to all financial institutions in Nigeria to adhere to the rules and regulations governing their operations, with the ultimate goal of maintaining a stable and secure financial system for the benefit of all stakeholders.