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CBN revokes operating license of Heritage Bank with immediate effect

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 COMFORT EKELEME, Business Editor

 

The Central Bank of Nigeria (CBN), 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, has revoked the licence of Heritage Bank Plc with immediate effect.

 

CBN in a statement signed by it’s Ag. Director, Corporate Communications, Hakama Sidi Ali said the action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA,2020.

 

The regulator also noted that the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

 

CBN said, this follows a period during which the it engaged with the bank and prescribed various supervisory steps intended to stem the decline.

 

Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

 

Consequently, the CBN said it has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.

 

The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

 

“We wish to assure the public that the Nigerian financial system remains on a solid footing.

 

“The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” CBN said.

 

For a better society

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