business
Keystone Bank Stability Reaffirmed by CBN
The Central Bank of Nigeria (CBN) has reaffirmed the stability and financial health of Keystone Bank Limited following a court ruling that mandated the forfeiture of shares previously held by its former shareholders.
This move comes after the Lagos State Special Offences Court ordered the transfer of 6.3 billion units of ordinary shares in the bank, valued at N1 each, to the Federal Government of Nigeria.
The ruling, delivered on February 11, 2025, follows the CBN’s decision in January 2024 to dissolve Keystone Bank’s former board and management due to corporate governance breaches. The regulatory authority subsequently appointed new leadership to oversee the bank’s operations and ensure compliance with banking regulations.
In response to concerns regarding the ruling, Keystone Bank issued a statement clarifying that the court-ordered forfeiture only affects the ownership structure and does not impact the bank’s operations or customer deposits. The bank emphasized that it remains financially sound, well-capitalized, and committed to providing uninterrupted services to its customers.
“The recent court decision does not in any way affect our ability to meet our obligations to customers and stakeholders. We assure the public that Keystone Bank is safe, healthy, strong, and resilient,” the bank stated. It further added that the transition of ownership marks a significant milestone that positions the institution for sustained growth, stronger partnerships, and enhanced profitability.
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The Federal Government’s assumption of full ownership is expected to facilitate Keystone Bank’s recapitalization efforts and strengthen its long-term viability. The move aligns with broader efforts by Nigerian authorities to stabilize the banking sector, address governance concerns, and reinforce confidence in the financial system.
The CBN has urged customers and stakeholders to continue their banking activities with Keystone Bank without hesitation, assuring them of continued regulatory oversight to maintain the bank’s operational integrity. Market analysts believe that with the Federal Government’s backing, Keystone Bank is well-positioned to navigate the evolving financial landscape and contribute to Nigeria’s economic growth.
As developments unfold, stakeholders are expected to closely monitor further announcements from both the CBN and Keystone Bank regarding future restructuring or potential investor involvement in the institution.
