The Central Bank of Nigeria (CBN) has granted approval for the proposed merger between Unity Bank Plc and Providus Bank Limited, a move aimed at bolstering the stability of the nation’s financial system and averting potential systemic risks.
According to a statement by the CBN’s Acting Director, Corporate Communications, Mrs. Sidi Ali Hakama, the strategic merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s outstanding obligations to the Central Bank and other stakeholders.
The CBN’s decision is in accordance with Section 42 (2) of the CBN Act, 2007, which enables the bank to provide financial support to ensure the financial health and operational stability of the post-merger organisation. The move is seen as a proactive measure to safeguard depositors’ interests and ensure the smooth functioning of the banking sector.
CBN’s take unity Bank & providus bank merger
In a statement, the CBN stressed that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated. The bank remains committed to maintaining financial stability and promoting confidence in the banking system during this transformative period.
The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period. With this approval, Both Banks are now set to merge, paving the way for a stronger and more stable financial institution in Nigeria.
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