Union Bank of Nigeria has reassured customers and stakeholders of stability in its operations and the safety of customers’ deposits following comments from the Governor of the Central Bank of Nigeria, Olayemi Cardoso, on lenders currently under regulatory oversight.
In a statement on Wednesday, the bank said that the CBN governor’s comments were consistent with its communication to stakeholders, emphasising that the institution remains operationally sound and continues to function within regulatory parameters.
The NGGOSSIPS reports that at the end of the MPC on Tuesday, Cardoso said the class of financial institutions under regulatory intervention face unique structural considerations that warrant a differentiated recapitalisation timeline compared with banks that have had longer preparation periods.
He said, “The other group that I think I would be remiss not to mention are the institutions which are currently undertaking regulatory intervention with certain legal and structural considerations that have naturally influenced the sequencing of their recapitalisation actions. In other words, it’s unreasonable to expect that they would follow the same sequence as those that really and truly two and a half years ago, when we made this announcement, have had ample time in which to do a lot of the things they are doing.
“We remain the Central Bank of Nigeria, actively engaged with all relevant stakeholders to ensure that they have an orderly and credible outcome while maintaining financial stability.”
Speaking on the development, the Chief Brand and Marketing Officer of Union Bank, Olufunmilola Aluko, said the bank remains under strong supervisory engagement while maintaining uninterrupted service delivery.
“The governor’s remarks reinforce what has consistently been our position in all engagements with stakeholders. Union Bank remains under strong regulatory oversight and active supervisory engagement. The bank is a going concern with a resilient franchise, stable operations and uninterrupted service delivery across all channels. We have maintained, and continue to maintain, that all customer deposits are safe and secure.”
She added that the bank is working transparently with regulators toward compliance under the recapitalisation framework, saying, “That position has not changed. The Bank continues to operate within the established regulatory framework, working transparently and constructively with the Central Bank of Nigeria towards full compliance in line with the applicable structure. We recognise the importance of regulatory engagement in ensuring financial system stability. As engagements progress, the bank will provide updates while maintaining its commitment to customer protection and service continuity.”
The NGGOSSIPS reports that in January 2024, the CBN dissolved the boards of Union Bank of Nigeria, Keystone Bank and Polaris Bank over infractions ranging from regulatory non-compliance and corporate governance failure to disregarding the conditions under which their licences were granted and involvement in activities that pose a threat to financial stability, among others.
Meanwhile, at the end of the MPC, the CBN governor revealed that 20 banks have fully met the new minimum capital requirements, and a further 13 are at the advanced stage of their capital-raising processes.
In March 2024, the CBN directed banks with international licences to raise their minimum paid-up capital to N500bn, while those with national authorisation are required to meet a N200bn threshold before the 31 March 2026 deadline.
Regional commercial banks and merchant banks are expected to have a minimum capital base of N50bn, while non-interest-bearing banks must hold N20bn for national licences and N10bn for regional licences.
