The banking license of Heritage Bank Plc has been revoked by the Central Bank of Nigeria (CBN), in accordance to its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
The CBN, in a circular signed by Hakama Sidi Ali, the acting director of corporate communications on Monday, stated that the revocation is expected to take effect immediately.
The memo by the CBN said: “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 licence the next necessary step.”
The CBN explained that it 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,” it reiterated.
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