The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc with immediate effect. This decision was made following the CBN’s 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.
The CBN cited Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020, as the reason for the revocation. The bank’s financial performance has not improved, posing a threat to financial stability. Despite the CBN’s efforts to engage with the bank and prescribe supervisory steps to stem the decline, Heritage Bank has continued to suffer and has no reasonable prospects of recovery.
The CBN stated that the action was necessary to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.
The CBN assured the public that the Nigerian financial system remains on a solid footing, and the action reflects the regulator’s commitment to ensuring the safety and soundness of the financial system