CBN Revokes Heritage Bank License With Immediate Effect, Gives Reasons

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

The CBN spokesperson, Hakama Ali, said in a statement on Monday, June 3, said the decision was made because the bank violated Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Ali also mentioned that Heritage Bank’s board and management failed to improve the bank’s financial situation, posing a risk to financial stability.

She said that the license withdrawal is part of the CBN’s duty to maintain a healthy financial system in Nigeria, as allowed by Section 12 of BOFIA 2020.

Ali said that the CBN had tried various measures to help the bank recover, but these efforts were unsuccessful, stressing that revoking the license was deemed necessary.

The CBN spokesman said that the action aims to maintain public confidence and the integrity of the financial system.

She said that the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the bank’s liquidator, as specified by Section 12 (2) of BOFIA 2020.

Ali also assured the public that Nigeria’s financial system remains stable and that this step is part of ongoing efforts to ensure its safety and soundness.

She said: “The Central Bank of Nigeria, CBN, 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, 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 in accordance with 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.”

KanyiDaily recalls that the Central Bank of Nigeria (Bn) also recently the entire Board of Directors overseeing Polaris, Titan, Union, and Keystone Banks.