CBN on Heritage Bank: “The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery.”
By Emma Ogbuehi
The Central Bank of Nigeria (CBN) has revoked the license of Heritage Bank Plc with immediate effect.
The decision, it said, was to maintain a stable and healthy financial system as authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
A statement from the CBN by Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications, said the revocation was executed after Heritage Bank breached Section 12 (1) of BOFIA 2020.
“The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery,” the apex bank stated.
The CBN further said it took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.
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To ensure public confidence and integrity of the financial system, the CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of the Bank as stipulated in Section 12 (2) of BOFIA 2020.
The CBN reassured the public that Nigeria’s financial system remains robust and secure.
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