JUST IN: CBN approves merger of Unity, Providus banks
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The Central Bank of Nigeria (CBN) has finally approved the merger of Providus Bank Limited and Unity Bank.
The acting Director, Corporate Communications of the apex bank, Takamatsu Sidi-Ali disclosed this in a statement.
She said the approval of the financial accommodation for the merger was an important step taken to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
Meanwhile, this merger marks the first of its kind following CBN’s directive to increase the minimum capital base for financial institutions.
The statement reads, “The Central Bank of Nigeria has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
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“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
“This arrangement is crucial for the financial health and operational stability of the post-merger organisation.”
