Breaking: CBN Revokes Licence Of Popular Commercial Bank

The operating license of Heritage Bank, one of the commercial banks in Nigeria, has been revoked by the Central Bank of Nigeria (CBN).

 

This development was announced in a statement released on Monday, June 3, by Ag. Director, Corporate Communications, CBN, Hakama Sidi Ali.

 

According to her, the CBN, in line with its responsibility to uphold a stable financial system in Nigeria and utilizing its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, has decided to immediately revoke Heritage Bank Plc’s license.

This action, she noted was deemed necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020.

Ali noted that the bank’s Board and Management’s inability to enhance its financial performance has posed a threat to financial stability.

The statement added: “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.”