- By Halimah Olamide
The operational license of Heritage Bank was on Monday revoked by the Central Bank of Nigeria.
Announcing the decision of the apex, Hakama Sidi Alli, Acting Director Corporate Communications said Heritage’s consistent inability to fulfil its obligations amount to threat to financial stability.
The CBN said it’s action is in accordance with its mandate to promote a sound financial system in Nigeria.
It added it is also 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.
The CBN said, “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.”
The apex bank expressed concern that the bank has continued to suffer and has no reasonable prospects of recovery, “thereby making the revocation of the license the next necessary step.”
The CBN said it’s action is consequent upon the need 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.”