- The Central Bank of Nigeria (CBN) has released a public statement on the Keystone Bank takeover
- The CBN statement addresses concerns over the safety of depositors' funds, and what customers should expect
- CBN also shared more insights into why the CBN took over the management of Keystone Bank Limited.
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Central Bank of Nigeria (CBN) has spoken up on the recent takeover of Keystone Bank Limited.
The Apex bank assured stakeholders that while their concerns are justified, there is no cause for alarm.
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In a Press Release issued on Friday, and signed by the Acting Director, Corporate Communications, Mrs Hakama Sidi Ali, the bank assured customers that the bank remains fully operational.
CBN takes over Keystone Bank after court order
The Central Bank of Nigeria just took over management of Keystone Bank following a Court Order during the week.
The court ordered that shareholders of Keystone Bank Limited should forfeit the N6.3 billion shares to the Federal Government of Nigeria.
Keystone Bank said in its statement that the order brings some new clarity that will properly position the bank for sustained growth, stronger collaborations, and enhanced profitability.
The takeover has led to massive fund withdrawals by customers despite assurances that the bank remains financially healthy.
Keystone Bank remains stable
The statement from CBN assured that the apex bank has taken over management of the bank and the operations will remain stable.
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It also assured that CBN is committed to ensuring depositors’ funds stay safe.
The statement read;
“We acknowledge that this development may have triggered customer concerns; however, we wish to underscore that the stability of the banking system and the safety of depositors' funds remain our top priorities. Keystone Bank's operations are entirely secure, and there is no reason for concern.”
Why CBN took over Keystone Bank
The statement also shared details of why the CBN took over the management of Keystone Bank Limited.
It explained that the court order was just a reaffirmation of CBN’s earlier decision to take over managing the bank in January 2024.
CBN had announced a dissolution of the bank’s Board and Management for breach of corporate governance and appointed a new management.
“Since then, the CBN has closely monitored the bank's operations to ensure they are in full compliance with regulatory standards, operational transparency, and the interests of depositors.
"As part of our commitment to safeguarding the financial system and building public trust, we shall continue to monitor the bank's performance. We will take all necessary steps to protect the interests of depositors, staff, and stakeholders.”
It added that customers can walk into the nearest branch of Keystone Bank to make inquiries about any further concerns they have.
Keystone Bank might change name after CBN takeover
In related news, Keystone Bank Limited clarified the reports of its takeover by the Nigerian government through a court order.
The bank confirmed the court order, stating that it is now wholly owned by the Nigerian government.
The court order also authorised asset forfeiture and clarified the status of the former owners, Sigman Golf Limited and Umaru Modibo.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
