The Central Bank of Nigeria (CBN) on Monday revoked the license of Heritage Bank Plc with immediate effect.
The apex bank linked its decision to the need to maintain a stable and healthy financial system as authorized under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications of the CBN, said in a statement that the revocation was executed after Heritage Bank breached Section 12(1) of BOFIA 2020.
Sidi noted that the bank failed to improve its financial performance, posing a risk to the financial stability of the country.
READ ALSO: CBN Suspends Charges On Cash Deposit Till September
“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 apex bank, however, reassured the public that Nigeria’s financial system remains robust and secure.
