Breach Of BOFIA: CBN Wields The Big Stick, Revokes Heritage Bank’s Licence

The Central Bank of Nigeria (CBN), on Monday, June 3, 2024, announced revocation of the licence of Heritage Bank Plc.

The CBN said that the revocation which takes immediate effect followed the breach of Section 12(1) of the Banks and Financial Acts (BOFIA).

The Bankers’ bank explained that it took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.

These were contained in a statement by Hakama Sidi-Ali, Acting Director, Corporate Communications Department of the CBN, in which she assured the public that the Nigerian financial system remains on a solid footing.

The CBN further said that the action was in accordance with its mandate of promoting a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act.

 The apex bank also said that the Board and Management of the Heritage bank were not able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

The statement also said that this followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

According to the CBN; “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.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

“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,” the CBN statement said.