CBN Approves Unity Bank, Providus Bank Merger To Bolster Stability In Financial System
By Chidiebere Ugwu
As part of efforts to ensure the success of the ongoing re-capitalization of the Deposit Money Banks in the country the Central Bank of Nigeria (CBN) on Tuesday granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Pic and Providus Bank Limited.
Mrs. Hakama Sidi All, the Acting. Director, Corporate Communications, who made this known in a statement, stated the strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks, underscoring CBN’s dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
According to the apex Bank’s Spokesperson, the action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
The statement reads in parts: “The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Pic and Providus Bank Limited.
“This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
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“The merger is contingent upon the financial support from the CBN.
“The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
“This arrangement is crucial for the financial health and operational stability of the post-merger organisation.
“Furthermore, it is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.
“The CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period”.
