CBN revokes Heritage Bank’s license over inability to improve financial performance

Agenda Papers reports that the Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank.

The CBN, in a statement issued on Monday by the Acting Director, Corporate Communications Hakama Sidi said that the revocation, which has an immediate effect is by its mandate to promote a sound financial system in Nigeria.

“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.

“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.”

The CBN noted that its action was also aimed at strengthening public confidence in the banking system and ensure that the soundness of the financial system is not impaired.

The CBN equally announced that the Nigeria Deposit Insurance Corporation (NDIC) is appointed as the Liquidator of the bank by 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,” the CBN said.