Key Points of the CBN’s Approval for Unity Bank and Providus Bank Merger
Approval Granted: The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited
Strategic Move: This approval is a strategic move designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks
Financial Support: The merger is contingent upon the financial support from the CBN, which will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders
Financial Health: This arrangement is crucial for the financial health and operational stability of the post-merger organization
No Precarious Situation: The CBN emphasized that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated
Dedication to Financial Stability: The CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
Bailout Amount: The CBN approved a financial package worth N700 billion to support the proposed merger
Loan Terms: The bailout is a 20-year term loan designed to ensure the operational stability of the merged entity, with a principal moratorium of five years and a minimum interest rate of 6%
