As largely expected, following the report of the special investigator of the former Central Bank governor Godwin Emefiele, raising red flags about the acquisition of the banks, the Central Bank yesterday dissolved the boards of directors of the banks. The action followed what is largely regarded as non-compliance with critical regulatory provisions by the banks and their boards. Part of the statement reads: “This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020. “The Bank’s infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that pose a threat to financial stability, among others. None of the banks is publicly listed, so there are no ramifications for public investments. Union Bank was recently delisted after Titan Trust Bank acquired it. The apex Bank also announced Yetunde Oni, Hassan Imam, and Lawal Akintola as new CEOs of Union Bank, Keystone, and Polaris Banks, respectively.
