ABUJA, Nigeria – Mediaage NG News – The boards and management of Keystone, Polaris and Union Banks were this week dismissed by the Central Bank of Nigeria over lack of compliance with banking regulations, as well as corporate governance failures.
This was triggered by a report and set of recommendations from a special investigator hired by President Bola Tinubu to look into the CBN, which prompted the changes at the banks as they are regulated by the CBN.
New management teams have been appointed to take over the three private banks.
Should customers of Keystone, Polaris and Union Banks panic for their money?
The short answer is, nothing.
Nothing is expected to change for customers’ deposit accounts at these banks, as they have not been liquidated or declared insolvent.
Note that this is not the first time that the CBN has sacked and appointed new management at private banks in Nigeria. In previous instances, such as Skye Bank in 2018, there was no loss of depositors’ money.
President Tinubu’s tough reforms are being driven by his bid to stop what he calls “leakages and abuse” in the financial sector. His team are looking to shore up institutions to guard against any collapse and the impact that could have on Nigeria’s economy.
The president’s plan also includes the liberalisation of the foreign exchange market to help manage the rapid fall in value of the local currency, the naira.