Analysts Seek Clarity on Ownership of Union, Polaris, Keystone Banks

Following the dissolution and reconstitution of the boards of Union, Keystone, and Polaris Banks, analysts have expressed concerns over the ownership structures of the banks and have called on the Central Bank of Nigeria (CBN) to offer greater clarity and provide detailed explanations on the institutions.

Analysts who spoke to THISDAY, noted that the apex bank was yet to address communications on the ownership and shareholders' fate in the banks.

Also, findings by THISDAY at some branches of Union, Polaris, and

Keystone Banks in Lagos, showed that there were minimal panic withdrawals.

Speaking on Arise News Channel yesterday, the Chief Executive Officer Cowry Asset Management, Johnson Chukwu, noted that the banks were originally nationalised and the current shareholders were those alleged to have acquired the institutions with public resources.

Chukwu said depositors needed not worry as the CBN had emphasised in its announcement that it would guarantee deposits and ensure the effective operation of the banks.

He emphasised the importance of maintaining confidence in the banking system to prevent any adverse effects on these banks and others.

Chukwu said: “Then as it relates to the decision that was taken by the central bank to dissolve the boards of Union Bank, Polaris and Keystone Bank. So, the basic issues around the acquisition of these three banks were public knowledge to those of us in the financial services industry. It was at a period when we had a king who did not do any bad or couldn’t do any evil or wrong.

“So, at that point in as much as it was discussed publicly but in muted groups, that this was the structure of the acquisition of these banks. So, it didn’t come as a surprise to us when we saw the Obaze report that indicated clearly that this financial institution was not acquired by private capital but by all forms of structure.”

Speaking further on shareholders and banking confidence, he said: “Polaris Bank was previously Skye Bank, which was nationalised; Keystone Bank, was former Bank PHB that was nationalised and Union Bank was the one that ordinarily should have ordinary shareholders.

“But I also know that the acquirers of Union Bank had actually taken it private by buying existing shareholders or made it a non-publicly quoted company.

“So, what would be the issue in Union Bank is the proportions of the shares that have been acquired through this special purpose vehicle that the allegation that it was funded through public resource.

“So once that is sorted, the shareholders will maintain their shareholding without any disturbance.

“As it relates to deposits, the central bank in its announcement stated that depositors should have nothing to worry about. And I personally don't think the CBN will do anything that will impede on the liabilities of the bank or the lives of depositors to assess your funding or the ability of these banks to meet their obligations as at when due because once you do that you're going to affect systemic banking system confidence and that could lead to these banks and other banks.”