CBN revokes licence of Heritage Bank

The Central Bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect.

Hakama Sidi Ali, Acting Director, Corporate Communication at the apex bank, announced this in a statement on Monday.

Ali said the action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.

She said: “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 licence the next necessary step.”

Mrs Hakama said 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.

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.

She said: “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.”