CBN Revokes Heritage Bank’s Licence Over Breach of Banking Regulations

By Sodiq Adelakun

The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s licence, citing a breach of banking regulations.

According to a statement released on Monday by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the decision was made to protect the stability of the financial system in Nigeria.

The CBN exercised its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) to revoke the licence, citing Heritage Bank’s violation of Section 12 (1) of the same act.

The statement read partly: “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.

“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step.’’

“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 action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,’’ she reiterated.

Meanwhile, CBN has taken decisive action to strengthen public trust in the banking system and safeguard the stability of the financial sector.

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