The Central Bank of Nigeria (CBN) announced on Monday that Heritage Bank Limited's operating license will be revoked with immediate effect. According to reports, the decision was made due to the bank's failure to improve its financial performance, which posed a threat to financial stability.
In a statement issued by CBN's acting Director of Corporate Communications, Mrs Hakama Sidi Ali, the apex bank said the move was in alliance with its mandate to promote a sound financial system in Nigeria and the exercise of its powers under Section 12 (1l) of the Banks and Other Financial Act (BOFIA) 2020.
The statement reads, "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 that 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. 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."
The CBN emphasized that this action is crucial to reinforcing public confidence in the Nigerian banking sector and ensuring the integrity and soundness of the financial system.
"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 statement added.
The Nigeria Deposit Insurance Corporation has been appointed as the liquidator of Heritage Bank, following the Banks and Other Financial Act 2020.
