4 Reasons Why CBN Sacked Board Of Union, Keystone, Polaris Banks

In the exercise of its regulatory powers, the Central Bank of Nigeria (CBN), on Wednesday, dissolved the Board and Management of Polaris Bank, Union Bank and Keystone Bank for violation of some sections of the Banks and Other Financial Institutions Act (BOFIA) 2020.

CBN said the affected banks committed four ‘sins’ or infractions, which necessitated it wielding the big stick against them.

A statement signed by the acting director of Corporate Affairs, CBN, Mrs Hakama Sidi-Ali, on Wednesday night, said the action became necessary due to the non-compliance of the three banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020.

Their Sins:

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1. Regulatory non-compliance

2. Corporate governance failure

3. Disregarding the conditions under which their licenses were granted

4. 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,” the statement by the apex bank added.