By Godfrey AKON
The Central Bank of Nigeria, CBN, has revoked the banking licence of Heritage Bank Plc with immediate effect.
The apex bank, in a statement by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, on Monday, said the revocation was in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act, BOFIA, 2020.
Ali said the measure become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020, adding that 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.
“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 statement stated.
The CBN therefore appointed the Nigeria Deposit Insurance Corporation, NDIC, as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.
It assured the public that the Nigerian financial system remains on a solid footing, stating that the action taken by the apex bank “reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system.”
