The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc with immediate effect, due to declining financial performance.
The apex bank further stated that the action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
This was contained in a press release by the CBN acting Director, Corporate Communications, Mrs Hakama Sidi Ali, and dated 3 June, 2024.
It stated that it took the action 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.
According to the CBN, the Board and Management of Heritage Bank have not been able to improve the bank’s financial performance, a situation which it said constituted a threat to financial stability.
The apex bank stated that it engaged with the bank over a certain period of time during which it offered various supervisory steps with the intention to stem the decline.
It added that Heritage Bank, regrettably, has continued to suffer and with no reasonable prospects of recovery, thus making the revocation of the banking license the next necessary step.
CBN further announced that it has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank, in accordance with Section 12 (2) 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) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020,” it was stated in the release.
The apex bank however assured 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,” it was added.
