The central bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect. According to CBN This is in accordance with their mandate to promote a sound financial system in Nigeria and in exercise of its powers under section 12 of the Banks and other financial Act (BOFIA) 2020.
This was contained in a letter released by CBN on Monday dated June 03, 2024. In their letter CBN said that Heritage Bank Plc has Breached section 12 (1) of BOFIA, 2020. That 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.
In their letter CBN also stated that they had earlier engaged with the bank and prescribed various supervisory steps indented to stem the decline. But regrettably, the bank has continued to suffer and has no reasonable recovery. As a result it becomes necessary for CBN to revoke their licence.
CBN took this action in order to strengthen public confidence in the Banking system and ensure that the soundness of financial system is not impaired.
CBN also appointed The Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank in accordance with section 12(2) of BOFIA, 2020.
