The Central Bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect.
Hakama Sidi Ali, Acting Director of Corporate Communication at the CBN, made the announcement in a statement on Monday.
Ali explained that the revocation was necessary due to the bank’s breach of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
“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,” she stated.
“This follows a period during which the CBN 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 licence the next necessary step,” Ali added.
The CBN’s decision aims to strengthen public confidence in the banking system and ensure the soundness of the financial system is not impaired.
The Nigeria Deposit Insurance Corporation (NDIC) has been 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,” Ali reassured.
