Why the licence of Heritage Bank was revoked – CBN

The Central Bank of Nigeria (CBN) announced that Heritage Bank’s banking licence had been revoked.

According to Mrs. Hakama Sidi Ali, Ag. Director of Corporate Communications, the revocation was carried out in line with the organization’s mission to support a stable financial system in Nigeria.

She said: “The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system in Nigeria and in the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.”

According to Ali, the bank violated Section 12 (1) of the BOFIA, 2020, which is why this action is now required.

The top bank went on to say that the bank’s management and board have failed to enhance the institution’s financial performance, posing a risk to the financial system’s stability.

According to Ali, this came after the CBN interacted with the bank and suggested several supervisory actions meant to stop the downturn.

She emphasized: 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.”

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.