By Chris Agabi
The Central Bank of Nigeria (CBN), has revoked the operating license of Heritage Bank Plc.
A statement by Hakama Sidi Ali (Mrs.), the Ag. Director, Corporate Communications at the CBN said the bank failed to meet its financial performance, a situation which constitutes a threat to financial stability.
It said the CBN acted 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.
CBN revoked 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 statement indicated.
“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” the CBN explained.
“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” the statement further indicated.
“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 CBN emphasized.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020” the statement indicated.
“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 totake all necessary steps to ensure the safety and soundness of our financial system” the CBN emphasized.
Further developments will be provided as events unfold.
