The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc with immediate effect.
The decision, announced by Hakama Ali, Acting Director of Corporate Communications at the CBN, comes under the bank’s mandate to maintain a sound financial system in Nigeria and is executed under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
Ali stated that Heritage Bank Plc violated Section 12(1) of BOFIA, 2020. Despite the CBN’s engagement and supervisory efforts to improve the bank’s financial performance, the bank continued to decline without reasonable prospects of recovery. This situation posed a threat to financial stability, necessitating the revocation of its license.
“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,” Ali explained.
The CBN’s action aims to strengthen public confidence in the banking system and ensure the soundness of the financial system. To manage the aftermath, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank under Section 12(2) of BOFIA, 2020.
The CBN reassured the public that the Nigerian financial system remains stable and robust. “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 statement added.
