The Central Bank of Nigeria (CBN), by its mandate to promote a sound financial system in Nigeria and in the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, at this moment revokes the licence of Heritage Bank Plc with immediate effect.
In a statement on Monday, the Ag. Director of Corporate Communication, Hakama Sidi Ali, said the action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
According to the statement, the Board and Management of the bank have not been able to improve the bank’s financial performance, which constitutes a threat to financial stability.
“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps to stem the decline.
“Regrettably, the bank has continued to suffer and has no reasonable recovery prospects, thereby making the revocation 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) has been appointed by Section 12 (2) of BOFIA, 2020 as liquidator of the bank.
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.
