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VENO NEWS: Polaris Bank Not Sold, All Banks Safe, Sound â€“ NDIC boss
Date: 10-08-22

Mr. Bello Hassan, Managing Director, Nigeria Deposit Insurance Corporation (NDIC) has said that all Deposit Money Banks (DMBs) in Nigeria, including Polaris Bank, are safe and sound.

Hassan clarified the sideline of a three-day Capacity Building Workshop organized by the Legal Department of NDIC, for law enforcement agencies at BWC Hotel, Victoria Island, Lagos, on Wednesday.

He also said that Polaris Bank was not sold as reported by some media recently.

It was reported that the event had, â€œEffective Investigation and Prosecution of Banking Malpractices that Led to Failure of Banksâ€™â€™, as its theme.

â€œAll banks that are operating within the country are sound in as much as their licenses have not been revoked.

â€œIf there is a problem, the regulator that issues the license will be the one to revoke the license.

â€œIn as much as the license is not revoked, youâ€™re free to continue to bank with the institution; it means it is safe,â€™â€™ Hassan said.

The NDIC boss also explained that the corporation usually carried out stress tests on banks every month, to ascertain their financial soundness.

He said: â€œThe Central Bank also does stress testing, and so do we in NDIC. We do it every month to ascertain the financial soundness of those banks and we see no red line.

â€œWhen we talk of key financial soundness indicators, we are talking about the capital adequacy and liquidity and the quality of the assets.

â€œThose two solid financial soundness indicators that you use to gauge the safety and soundness of these institutions are robust.

â€œSo, based on that, the banks are safe and sound; continue to bank with them.â€™â€™

Recall that the management of Polaris Bank recently discredited the report on the purported sale of the bank by the Central Bank of Nigeria (CBN) to private individuals for N40 billion.

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