The Central Bank of Nigeria (CBN), has said that it has revoked the banking license of Heritage Bank with immediate effect because of the institution’s breach of Section 12 (1) of Banks and Other Financial Institutions Act (BOFIA) 2020.
The apex Bank, in a statement by Hakama Sidi Ali (Mrs.), Ag. Director, Corporate Communications, stressed 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.”
She said that the action followed “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.”
According to the statement, the Nigeria Deposit Insurance Corporation (NDIC) has as a result, been “appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.”
The CBN assured “the public that the Nigerian financial system remains on a solid footing,” stressing that “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.”
