CBN ensures that depositor money is secure

The people who use banks have once again been reassured by the Central Bank of Nigeria about the security of their deposits and the stability of the banking sector.

The assurance was provided in a statement on Monday in Abuja by Mrs. Hakama Sidi-Ali, Acting Director of the Corporate Communications Department at the apex bank.

In response to concerns expressed by some over the stability of certain Nigerian banks following the revocation of Heritage Bank Plc’s license, Sidi-Ali made his comments.

Claims that the CBN was thinking of canceling the operating licenses of Fidelity, Polaris, Wema, and Unity Banks were refuted by a representative for the top bank.

She further explained that a circular that the Bank had published on January 10, 2024, informing the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being distributed at the moment as if it had just been released.

The director claimed that Heritage Bank’s situation was unique.

“Allegations of further revocation of licences prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system,” she said.

She added that the Nigeria Deposit Insurance Corporation (NDIC) had started paying out to the bank’s insured depositors, so customers, especially those of Heritage Bank, should not be concerned about the security of their money.

Sidi-Ali cautioned the public from believing any untrue claims about the state of particular Deposit Money Banks and instead recommended them to carry on with their routine banking transactions.

“The CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions,” she said.

Sidi-Ali restated Olayemi Cardoso, the governor of the CBN,’s assurances that the goal of the Nigerian bank recapitalization was to strengthen the banking system and protect the industry from threats.

In order to ensure the process’s success, which she claimed would be for the general expansion of the Nigerian economy, she urged all parties involved to work together.

“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

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

NAN