CBN Revokes Heritage Bank’s License
The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s banking license due to its ongoing financial instability and inability to recover despite regulatory interventions.
The decision, disclosed by the CBN’s Acting Director of Corporate Communication, Sidi Ali, on Monday, was taken to protect the financial system and maintain public confidence. The CBN cited the bank’s failure to improve its financial performance as a significant threat to the stability of Nigeria’s financial sector.
“The Nigerian financial system remains on a solid footing. We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the CBN statement emphasized.
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in accordance with the Banks and Other Financial Act (BOFIA) 2020. This move is intended to safeguard depositors’ funds and uphold the integrity of the financial system.
The CBN’s statement further detailed the reasons behind the decision: “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.”
Despite various supervisory steps taken by the CBN, Heritage Bank’s financial health continued to deteriorate with no reasonable prospects of recovery. The regulator’s engagement with the bank aimed to stem the decline, but these efforts proved insufficient, leading to the license revocation as a necessary step to strengthen public confidence in the banking system.
The CBN reassured the public that this action would not affect the overall health of Nigeria’s financial system, reiterating their ongoing commitment to maintaining a robust and secure financial environment.
