Breaking: CBN withdraws Heritage Bank’s licence

The Central Bank of Nigeria (CBN) has announced on Monday that it has withdrawn the operating licence of Heritage Bank.

The CBN also stated that Heritage Bank’s financial struggles have persisted, with no viable path to recovery, necessitating the revocation of its license as the next logical step.

Consequently, the Nigeria Deposit Insurance Corporation (NDIC) has been designated as the bank’s Liquidator, as stipulated in Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA), 2020.”

CBN Ag. Director, Corporate Communications, Mrs Hakama Ali stressed that the revocation was done in accordance with its mandate to promote a sound financial system in Nigeria.

It explained that this action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.

The apex bank added that 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.

Ali noted that this followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

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.”

“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.”