The Central Bank of Nigeria (CBN) has taken the decisive step of revoking the banking license of Heritage Bank Plc with immediate effect due to its persistent financial underperformance.
This action, as conveyed by the Acting Director of Corporate Communications at the CBN, Hakama Ali, on Monday, is in line with the CBN’s mandate to uphold a robust financial system in Nigeria, exercising its authority under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Ali highlighted that Heritage Bank’s failure to improve its financial standing has violated Section 12 (1) of BOFIA 2020, posing a threat to financial stability.
Despite the CBN’s efforts to guide and support the bank through supervisory measures, Heritage Bank’s financial condition has continued to deteriorate, leaving no reasonable expectation of recovery. Hence, the revocation of its license has become an unavoidable measure.
In light of this development, the CBN emphasized its commitment to bolster public confidence in the banking sector and safeguard the integrity of the financial system.
As part of the resolution process, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank, as stipulated under Section 12 (2) of BOFIA 2020.
The CBN assured the public of the overall stability of the Nigerian financial system, affirming its dedication to taking all necessary actions to preserve its safety and soundness.
This decisive action underscores the regulatory authority’s unwavering commitment to maintaining a resilient and reliable financial environment for all stakeholders.
