The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank.
The announcement was made by Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN.
In a statement, Ali said, “The Central Bank of Nigeria, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the license of Heritage Bank Plc with immediate effect.”
This action was necessitated by the bank’s violation of Section 12 (1) of BOFIA 2020. The statement further highlighted that the Board and Management of Heritage Bank had failed to improve the bank’s financial performance, posing a threat to financial stability.
The CBN noted that it had engaged with Heritage Bank over a period, implementing various supervisory measures to halt the bank’s decline. Despite these efforts, the bank continued to deteriorate, showing no reasonable prospects of recovery. Therefore, the revocation of the license was deemed necessary.
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“The CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired,” Ali added. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of Heritage Bank in accordance with Section 12 (2) of BOFIA 2020.
The CBN reassured the public that the Nigerian financial system remains robust and that this action underscores their commitment to maintaining the safety and soundness of the financial system.