Tuesday, 05 November, 2024

CBN revokes license of Heritage Bank


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Nigeria (CBN) have released a statement to announce that the license of the financial institution, Heritage Bank has been revoked.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

Central Bank of Nigeria x Heritage Bank
Central Bank of Nigeria x Heritage Bank

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She said: ā€œThe 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.

ā€œThis action has become necessary due to the bankā€™s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bankā€™s financial performance, a situation which constitutes a threat to financial stability.ā€

Further Reasons…

ā€œThis follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

ā€œRegrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

ā€œConsequently, 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.

ā€œThe Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

ā€œWe 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.ā€


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