CBN Withdraws Operating Licences Of 153 Micro Finance Banks

No fewer than 153 Micro-Finance Banks (MFBs) and six Primary Mortgage Banks (PMBs), had their operating licences revoked by the Central Bank of Nigeria (CBN) in 2018.

The Nigeria Deposit Insurance Corporation (NDIC), made this disclosure in its 2018 annual report recently released in Abuja.

The report also revealed that when the Central Bank of Nigeria (CBN), revoked the operating licence of the troubled Skye Bank, the Corporation resolved the problem using a bridge bank mechanism.

It added that Polaris Bank, acquired by the Asset Management Corporation of Nigeria (AMCON), was established to purchase the assets and assume liabilities of the failed Skye Bank.

It further said that the operating licences of 15 MFBs and one PMB were instated during the period.

It however assured that it will adopt a cost-effective method of bank failure resolution to protect depositors and also ensure prompt reimbursement of depositors in the event of bank failure in its future outlook.

The report said the Corporation would strengthen its supervisory functions by enhancing its skills in stress testing, financial technology, recovery and resolution plans.

NAN