Effective immediately, the Central Bank of Nigeria (CBN) has terminated Heritage Bank Plc‘s licence.
The regulator stated that the decision was made in response to the bank’s inability to improve its financial performance.
On Monday, the apex bank announced the revocation in a statement written by Hakama Ali, acting director of corporate communications.
The CBN stated that the decision complies with its duty to ensure a healthy financial system in Nigeria and is an exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
The statement reads:
“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 stability.
“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.”
“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 further statement reads.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby 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 CBN stated that the revocation demonstrates its continuous commitment to taking all necessary steps to preserve the safety and soundness of Nigeria’s financial system.