Nigeria’s Central Bank has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank for non-compliance with banking regulations and corporate governance failures. The affected lenders are privately held and have come under government control in the past.
According to a statement by the Central Bank of Nigeria (CBN), the Board and Management of Union Bank, Keystone Bank, and Polaris Bank have been dissolved for non-compliance with banking regulations and corporate governance failures. The banks’ infractions were said to range 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 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,” said the regulator.
The move by Central Bank Governor Olayemi Cardoso comes as the sector gears up for an expected regulatory-induced capital hike, which the governor has said is needed to support Nigeria’s economic growth ambitions.
Union Bank was recently sold to privately held Titan Trust Bank under former Central Bank Governor Godwin Emefiele, who was suspended by President Bola Tinubu on allegations of fraud. Tinubu appointed a special investigator to probe the central bank under Emefiele, and analysts said the sacking of the boards of the three banks could be linked to the outcomes of the investigation. The probe findings have yet to be made public.
