Central Bank of Nigeria revokes Heritage Bank Plc licence amid financial stability concerns
The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s licence, citing critical breaches of the Banks and Other Financial Act (BOFIA) 2020.
This decisive action underscores CBN’s commitment to promoting a robust financial system in Nigeria and exercising its regulatory authority under Section 12 of BOFIA.
The revocation follows Heritage Bank’s prolonged financial underperformance and inability to meet regulatory requirements, particularly Section 12 (1) of BOFIA 2020.
Despite extensive engagement and the implementation of supervisory measures aimed at reversing the bank’s declining fortunes, the Board and Management of Heritage Bank have failed to achieve a turnaround.
Consequently, the bank’s persistent struggles and lack of viable recovery prospects have necessitated this intervention by the CBN.
In a bid to safeguard financial stability and bolster public confidence in the banking system, the CBN has designated the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank, as stipulated under Section 12 (2) of BOFIA 2020.
This move is intended to ensure an orderly liquidation process, protecting the interests of depositors and maintaining the integrity of the financial system.
The CBN reassures the public that the Nigerian financial system remains fundamentally sound and resilient. The revocation of Heritage Bank’s licence reflects the central bank’s unwavering commitment to taking necessary actions to uphold the safety and soundness of Nigeria’s financial sector.
This proactive measure aims to mitigate any potential risks to the broader banking system and ensure continued confidence in the sector’s stability.
