The Central Bank of Nigeria, CBN, has revoked the operating license of Heritage Bank Plc with immediate effect.
According to report, the CBN, stated that the decision was taken to maintain a stable and healthy financial system. The apex bank maintained that its action is authorized under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
This was contained in a statement issued by from the CBN Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali. She 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.
“To ensure public confidence and integrity of the financial system, the CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank as stipulated in Section 12 (2) of BOFIA 2020.
The CBN, however, reassured the public that Nigeria’s financial system remains robust and secure,” the statement added.