The Central Bank of Nigeria (CBN) has officially revoked the banking license of Heritage Bank.
Acting Director of Corporate Communications, stated that the revocation aligns with the CBN’s mandate to ensure a robust and stable financial system in Nigeria.
She said: “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, hereby revokes the licence of Heritage Bank Plc with immediate effect.”
Ali noted that this measure was essential because the bank violated Section 12 (1) of the BOFIA, 2020.
The central bank further explained that the bank’s Board and Management have failed to enhance its financial performance, posing a risk to financial stability.
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Ali mentioned that this decision came after a period of CBN engagement with the bank, during which several supervisory steps were recommended to reverse the downturn.
She stressed: “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 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.”
