By Ifeyinwa Ogwo :
The Central Bank of Nigeria (CBN) has revoked the banking licence of the Heritage Bank PLC with immediate effect for their breach of section 12 (1) of the Bank and Other Financial Act (BOFIA) 2020 act.
This was made known in a CBN Press Release signed by the Ag. Director, Corporation Communications, Hakama Sidi Ali.
Ali expressed that the Board and Management of Heritage Bank have not been able to improve the bank’s financial performance, a situation that constitutes a threat to financial stability.
She said; “The CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline but regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of their licence the next necessary step.
“Consequently, the CBN has taken this action to strengthen public confidence in the banking system, to ensure that the soundness of our financial system is not impaired,” she added.
Ali reiterated that the Nigeria Deposit Insurance Corporation (NDIC) is appointed as the liquidator of the bank by section 12 (2) of BOFIA, 2020 and wishes to assure the public that Nigeria’s 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.”
