Mandy Park
Citing what it described as failure to improve financial performance, the nation’s Apex bank, Central Bank of Nigeria (CBN) has revoked Heritage Bank’s licence.
Hakama Sidi Ali, CBN acting Director, Corporate Communications, made the disclosure at a press release issued this morning, Monday, stating that the revocation of Heritage Bank’s license was in accordance with its mandate to promote a sound financial system in Nigeria and its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
The bankers bank further stated that the revocation was a move aimed at safeguarding the integrity of Nigeria’s financial system, adding that it decisively took the step of revoking the banking license of Heritage Bank PLC.
The action, effective immediately, came in response to the bank’s persistent failure to improve its financial performance, posing a threat to the stability of the country’s financial sector.
The press statement reads: “This action has become necessary due to the bank’s breach of Section 12 (1) of 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.
“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 Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank PLC in accordance with Section 12 (2) of BOFIA 2020.
The CBN reassured the public that the Nigerian financial system remained stable and robust, stressing its commitment to ensuring the safety and soundness of the financial system.
