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HomeLatestJust In: Heritage Bank Licence Revoked by CBN with Immediate Effect

Just In: Heritage Bank Licence Revoked by CBN with Immediate Effect

Ismail Abdulazeez Mantu Reporting

The Central Bank of Nigeria (CBN) has revoked the banking licence of Heritage Bank Plc with immediate effect.

This announcement was made on Monday by Hakama Ali, the Acting Director of Corporate Communications at the CBN, underlining the bank’s mandate to promote a sound financial system in Nigeria.

The CBN’s decision was executed under its powers vested by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. According to Ali, Heritage Bank had breached Section 12 (1) of BOFIA, 2020, failing to rectify its financial performance despite repeated supervisory interventions by the CBN.

The ongoing financial struggles of the bank posed a significant threat to the stability of the financial system, prompting the regulatory body to take stringent measures.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline,” Ali stated. “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.”

The CBN emphasized that this action is aimed at bolstering public confidence in the banking system and ensuring that the integrity of Nigeria’s financial system remains intact. As part of the revocation process, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank under Section 12 (2) of BOFIA, 2020.

In a reassuring note to the public, the CBN affirmed, “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.”

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