CBN Revokes Heritage Bank Plc’s License Due to Financial Instability

The Central Bank of Nigeria (CBN) has announced the immediate revocation of the banking license of Heritage Bank Plc, citing breaches of financial regulations and persistent underperformance that threaten economic stability.

This decision was made under the authority granted by Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

The CBN stated that the action was necessitated by Heritage Bank’s failure to improve its financial performance despite several supervisory interventions.

The ongoing decline in the bank’s condition led to the conclusion that there were no reasonable prospects for its recovery, prompting the need for license revocation to safeguard the financial system.

“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,” the CBN noted in its press release. Despite numerous efforts by the CBN to assist the bank, the measures were insufficient to reverse the downward trend.

To ensure orderly resolution and maintain public confidence, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank.

This appointment is in line with Section 12 (2) of BOFIA, 2020, and is intended to manage the bank’s assets and liabilities efficiently.

Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN, reassured the public that the Nigerian financial system remains robust and the central bank’s actions are part of ongoing efforts to maintain economic stability.

CBN Revokes the Banking Licence of Heritage Bank Plc…

Kindly click on the provided link to read more:https://t.co/PylKNfQiLo pic.twitter.com/Dt5HAHHLAX

— Central Bank of Nigeria (@cenbank) June 3, 2024

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, the statement noted.

• Israel Advises Citizens To Stay Off Maldives, Recommends India Amid Travel Ban

About The Author

Oluwasegun Sanusi

author

See author's posts