…Says Approval Designed To Avert Potential Systemic Risks
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.
The apex bank said this in a statement issued on Tuesday and made available to THE WHISTLER.
The statement was signed by the Acring Director, Corporate Communications, Mrs Hakama Sidi Ali
The strategic move, according to CBN is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
The merger, the statement noted 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.
The apex bank stated further in the statement that its action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
This arrangement, the statement added, is crucial for the financial health and operational stability of the post-merger organisation.
The statement said, “The Central Bank of Nigeria 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. 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.”
The CBN pointed out that no Nigerian bank currently faces a precarious situation comparable to that of Heriage 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,” it added.
The CBN said its decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
CBN Approves Proposed Merger Of Unity, Providus Bank is first published on The Whistler Newspaper