Breaking: CBN Revokes Heritage Bank’s Operating-License (Full Details)

Breaking: CBN Revokes Heritage Bank’s Operating-License (Full Details)

The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank, a commercial bank in Nigeria. This development was announced in a statement released on Monday, June 3, by Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN.

According to Ali, the CBN’s decision to revoke Heritage Bank Plc’s license is in line with its responsibility to uphold a stable financial system in Nigeria, utilizing its authority under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The revocation was deemed necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020.

The statement highlighted that the bank’s Board and Management failed to improve its financial performance, posing 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 statement read.

The CBN emphasized that this action is intended to strengthen public confidence in the banking system and ensure the soundness of the financial system is not compromised.

The Nigeria Deposit Insurance Corporation (NDIC) has been 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,” Ali added.