CBN revokes license of Heritage Bank

Estimated reading time: 2 minutes

The Central Bank of Nigeria (CBN) have released a statement to announce that the license of the financial institution, Heritage Bank has been revoked.

The announcement was made by the Acting Director, Corporate Communications, CBN, Hakama Sidi Ali on Monday, June 3 via a statement.

READ ALSO:

• CBN revokes licences of close to 3,000 BDCs in one year
• 2023: Drivers without license will no longer drive Nigeria – Peter Obi
• Nigerian BDCs face shakeup as CBN mandates new licenses, capital requirements
• 5 Footballers you probably didn’t know had African Heritage
• Tinubu endorses ‘Heritage Voyage of Return’ initiative

She said: “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 licence 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.”

Further Reasons…

“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.

“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.”