CBN Revokes Heritage Bank’s Licence Over Financial Instability

Heritage Bank Plc’s banking licence has been revoked by the Central Bank of Nigeria with immediate effect.

This decision was made owing to the bank’s failure to improve its financial performance, which threatened financial stability.

Sidi Ali, the apex bank’s Acting Director of Corporate Communication Department, made the announcement in a statement on Monday.

According to the CBN, despite several supervisory measures implemented by the regulator, the bank’s management has been unable to reverse the downturn.

With no realistic prospects for recovery, the CBN has taken this move to safeguard the financial system and sustain public trust.

“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 Heritage Bank’s liquidator under the Banks and Other Financial Act 2020.

The CBN’s move is considered as a key step towards maintaining financial system stability and protecting depositors’ funds.

The public has been assured that Heritage Bank’s licence revocation will have no influence on the financial system’s general health.

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The statement read, “The Central Bank of Nigeria (CBN), following its mandate to promote a sound financial system in Nigeria and 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.

“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

“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.

“Consequently, the CBN has taken this action 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 under 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.”