The NDIC boss said that Polaris Bank was not sold as reported recently by some media outlets.
By Jeffrey Agbo
All Deposit Money Banks (DMBs) in Nigeria, including Polaris Bank, are safe, Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan said on Wednesday.
Hassan spoke on the sideline of a three-day Capacity Building Workshop organised by the Legal Department of NDIC, for law enforcement agencies at BWC Hotel, Victoria Island, Lagos.
The NDIC boss also said that Polaris Bank was not sold as reported recently by some media outlets.
The workshop has at its theme, “Effective Investigation and Prosecution of Banking Malpractices that Led to Failure of Banks’’.
“All banks that are operating within the country are sound in as much as their licences have not been revoked.
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“If there is a problem, the regulator that issues the licence will be the one to revoke the licence.
“In as much as the licence is not revoked, you’re free to continue to bank with the institutio; it means it is safe,’’ Hassan said.
The NDIC boss also explained that the corporation carries out stress tests on banks, including Polaris Bank, on a monthly basis to ascertain their financial soundness.
He said: “The Central Bank also does stress testing, and so do we in NDIC. In fact we do it on a monthly basis to ascertain the financial soundness of those banks and we see no red line.
“When we talk of key financial soundness indicators, we are talking about the capital adequacy and liquidity and the quality of the assets.
“Those two solid financial soundness indicators that you use to gauge the safety and soundness of these institutions are robust.
“So, based on that, the banks are safe and sound; continue to bank with them.’’
The management of Polaris Bank recently discredited the report on the purported sale of the bank by the CBN to a private individual for N40 billion.
