The Central Bank of Nigeria (CBN), has revoked the banking licence of Heritage Bank Plc with immediate effect.
This, the apex bank said is 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.
In a statement sign by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali (Mrs.) and made to African Business Travel News (ABTNEW), Heritage Bank Plc is suspended from carrying out banking operations because it breached Section 12(1) of Banking and Other Financial Institutions Acts (BOFIA) 2020 and the failure of its management to improve its financial performances.
“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Managemen of the bank have not been able to improve thebank’s financial performance, a situation which constitutes a threat to financial stability. 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 license the next necessary step.
Consequently, 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, ” the statement clarified.
It continued, “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.
