The Central Bank of Nigeria (CBN) has announced the immediate revocation of the operational licence of Heritage Bank, saying that the development is due to the inability of the bank to improve its financial performance.
The apex bank also disclosed that it took the action as the precarious situation at the bank constituted a threat to financial stability.
The CBN stated this in a statement signed by its spokesperson, Mrs Hakama Sidi Ali and made available to journalists on Monday.
The CBN further said that the action to shutdown the bank was derived from its regulatory powers and in accordance with its mandate to promote a sound financial system in Nigeria.
The statement reads in part: “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.
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.
“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 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.”
