The Central Bank of Nigeria has revoked the banking licence of Heritage Bank Plc, effective immediately.
This decision was made because the bank failed to improve its financial performance, which posed a threat to financial stability.
Sidi Ali, the Acting Director of Corporate Communication Department at the Central Bank, announced this in a statement on Monday.
According to the Central Bank, the bank’s management was unable to stop the decline despite various steps taken by the regulator. With no prospects of recovery, the Central Bank took this action to protect the financial system and maintain public confidence.
“The Nigerian financial system remains on a solid footing.
“We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the statement added.
The Nigeria Deposit Insurance Corporation has been appointed as the liquidator of Heritage Bank, following the Banks and Other Financial Act 2020.
This move is seen as a significant step by the Central Bank to maintain the stability of the financial system and protect depositors’ funds. The public has been assured that the revocation of Heritage Bank’s license will not impact the overall health of the financial system.
The statement read, “The Central Bank of Nigeria (CBN), following its mandate to promote a sound financial system in Nigeria and 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.
“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 under 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.”
