The central bank of Nigeria (CBN) announced it has revoked the operating license of Heritage bank with immediate effect following what it described as the bank’s poor financial performance.
In a statement signed and released by the apex bank’s acting director of corporate communications, Halima Sidi Ali, the CBN said the action has become necessary due to Heritage bank’s breach of section 12 (1) of BOFIA, 2020.
The spokeswoman said the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of financial system is not impaired.
“The Central Bank of Nigeria, CBN, 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, hereby revokes the license of Heritage Bank Plc with immediate effect.
‘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,” the statement read.
She said the Nigeria deposit insurance corporation (NDIC) had been appointed as the liquidator of the bank in accordance with section 12 (2) of BOFIA, 2020.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.
“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,” the statement concluded.
