The Central Bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect.
Hakama Sidi-Ali, the Acting Director, Corporate Communications Department, announced this in a statement in Abuja on Monday.
According to her, the action was in accordance with the apex bank’s mandate to promote a robust financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act.
“This action became necessary due to the bank’s breach of Section 12 (1) of BOFIA,” the statement said.
“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 statement added.
“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 licence the next necessary step,’’ she said.
Hakama Sidi-Ali said the apex bank took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not hampered.
“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,’’ she said.
