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Sunday, June 16, 2024

CBN revokes Heritage Bank license

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The Central Bank of Nigeria (CBN) has revoked the license of Heritage Bank Plc.

The apex bank’s decision which followed with an immediate effect, was to maintain a stable and healthy financial system as authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

According to the statement by Mrs. Hakama Sidi Ali Acting Director, Corporate Communications of CBN, the revocation was executed after Heritage Bank breached Section 12 (1) of BOFIA 2020.

“The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery,” the apex bank stated.

To ensure public confidence and integrity of the financial system, the CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank as stipulated in Section 12 (2) of BOFIA 2020.

The CBN reassured the public that Nigeria’s financial system remains robust and secure.

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