CBN Revokes Heritage Bank License

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

The CBN said the action became necessary due to the bank’s breach of Section 12 (1) of the Banks and Other Financial Act BOFIA, 2020.

The apex bank also said the board and management of the bank have not been able to improve the bank’s financial performance, which it noted to have constituted a threat to financial stability.

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CBN’s spokesperson, Hakama Ali, in a statement on Monday, said the withdrawal of the bank’s operational licence is in accordance with the apex bank’s mandate to promote sound financial system in Nigeria, and in exercise of its powers under Section 12 of the Banks and Other Financial Act (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.

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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.

Details Shortly…