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Misleading! Union, Polaris, Keystone Banks have not been dissolved

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Claim: Facebook user asserts that CBN had dissolved Union Bank, Polaris Bank, and Keystone Bank.

Misleading! Union, Polaris, Keystone Banks have not been dissolved

Full Text

The Central Bank of Nigeria (CBN) is the primary regulator of Nigerian Banks, and part of its statutory objective is to promote a sound financial system in Nigeria. Following its mandate to promote a sound financial system in Nigeria and exercising its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, the CBN revoked Heritage Bank’s licence. 

Following this closure, Ben David posted on Facebook that Union Bank, Polaris Bank, and Keystone Bank had been dissolved. Another user, Ngozi Debulldozer, also posted the same thing, noting that the banks have been dissolved. 

Customers who had their funds and banked with the mentioned banks feared the claim. Juliet Onye, exclaiming, wrote, “Jesus, my whole savings is in Keystone Bank.” Another user, Tekenatei Ofongo, discrediting the news, wrote, “This is unfair.

You are going to cause panic with news that is not confirmed.”

The claim garnered 219 reactions, 208 comments, and ten shares. It can also be found here, here, here, and on X

The sensitive nature of the claim to millions of customers of the banks made DUBAWA verify it. 

Verification

DUBAWA did a keyword search on the claim and saw a press release posted by The Central Bank on January 10, 2024. The press release stated that the banks engaged in non-compliance with regulations, including disregarding the conditions under which their licenses were granted and involving in activities capable of threatening financial stability, among others. 

“The Central Bank of Nigeria (CBN) has dissolved the Board and Management

of Union Bank, Keystone Bank, and Polaris Bank.

This action became necessary due to the non-compliance of these banks and

their respective boards with the provisions of Section 12(c), (f), (g), (h) of the Banks

and Other Financial Institutions Act, 2020,” part of the press release read.

CBN had only dissolved the banks’ management boards; it did not close the banks.  

Other media organisations, such as Arise News and Punch Online, also confirmed that in January 2024, the CBN dissolved the banks’ boards of directors. 

The Central Bank, through its X handle, also debunked the news of the bank’s closure. 

Misleading! Union, Polaris, Keystone Banks have not been dissolved
Picture source: CBN on X

Conclusion

The claim that CBN had dissolved Union Bank, Polaris Bank, and Keystone Bank is false. In January 2024, CBN announced that they would dissolve the banks’ management and board directors. 

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