The Central Bank of Nigeria (CBN) has officially approved the merger between Unity Bank Plc and Providus Bank Limited. This significant move, announced on Tuesday, is aimed at bolstering the financial stability and operational efficiency of both institutions.
In a statement issued by the acting Director of Corporate Communications, Hakama Sidi, the CBN confirmed that the approval aligns with the provisions outlined in Section 42 (2) of the CBN Act, 2007.
“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 statement read.
“It is unequivocal to state that the CBN’s action is under 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.
“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 said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
Unity Bank commenced operations in January 2006, following the merger of nine banks with competencies in investment, corporate, and retail banking.
No comments:
Post a Comment