CBN Revokes Heritage Bank’s Licence
BY COBHAM NSA – The Central Bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect, citing the bank’s lack of reasonable prospects to recover from its current poor financial situation.
In a statement titled; “CBN REVOKES THE BANKING LICENCE OF HERITAGE BANK PLC”, the apex explained that the decision was in “exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020”.
Signed by Hakama Sidi Ali (Mrs), CBN’s Acting Director, Corporate Communications, the statement issued on Monday, June 03, 2024 said the apex bank is taking the measure 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.
The statement further said; “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.”
Going forward, the CBN said; “The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020″, adding; “We wish to assure the public that the Nigerian financial system remains on a solid footing.”
Assuredly, the apex bank said; “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”.