Heritage Bank shutdown: Banking system, depositors’ funds are safe, says CBN

Heritage Bank shutdown: Banking system, depositors’ funds are safe, says CBN

The director assured customers, especially those of Heritage
Bank, that their deposits were safe, adding that the Nigeria Deposit Insurance
Corporation (NDIC) had commenced payment to the bank’s insured depositors.


Ali said the CBN’s strong regulatory framework is actively
maintaining the stability of Nigeria’s financial system, ensuring the safety of
depositors’ funds across all Nigerian financial institutions.


“Key financial soundness indicators remain within current
regulatory thresholds,” Hakama said.


 “Customers are,
therefore, encouraged to proceed with their transactions as usual, as the CBN
is committed to ensuring the safety of the banking system.”


The director said a circular issued by the bank on January
10, informing the public about the dissolution of the boards of Union,
Keystone, and Polaris Banks, is being circulated as if it were issued on June


She said Heritage Bank’s situation was isolated and that
claims of additional licence revocations before completing the bank
recapitalisation process were fabrications intended to incite panic.


The director reaffirmed the assurances made by Olayemi
Cardoso, the CBN’s governor, regarding the purpose of the recapitalisation of
Nigerian banks, which is to strengthen the banking system and protect the
sector from risks.


Hakama urged all stakeholders to collaborate to ensure the
success of the process, adding that it is for the overall growth of the


“Without prejudice to the ongoing recapitalisation process,
I want to restate that the Nigerian banking industry remains resilient,” she


Hakama urged the public to continue their regular banking
activities without concern, disregarding any false reports concerning the
stability of specific deposit money banks.


On June 3, CBN announced the revocation of Heritage Bank’s
licence with immediate effect.


The regulator said the decision followed the bank’s
inability to improve its financial performance.


Following the revocation, online reports claimed the apex
bank would terminate the licences of Unity, Polaris, and Keystone banks.


However, on June 4, the bank said the content was not
authentic, adding that it has no plans to revoke the licences of the three

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