By Abiola Olawale
The Central Bank of Nigeria (CBN), on Monday, announced its decision to revoke the banking licence of Heritage Bank Plc with immediate effect.
In a statement issued by the Ag. Director, Corporate Communications, Hakama Ali, on Monday, the apex bank said the action was taken under its mandate to promote a sound financial system in Nigeria, and in the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
Ali, in the statement also said the decision was reached after Heritage Bank breached Section 12 (1) of BOFIA, 2020 coupled with the inability of the Board and Management of the bank to improve the bank’s financial performance over time.
According to him, the decision to revoke the bank’s license by the CBN is to help strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.
To this effect, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.
The statement reads in part: “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.”
“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,” the statement added.
