Abuja, Nigeria
Heritage Bank has lost its operating license, the Central Bank of Nigeria (CBN), said on Monday.
A statement released by CBN’s acting director of corporate communications of the Hakama Ali said the move was under its mandate to promote a sound financial system in Nigeria and the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
CBN said Heritage Bank had breached Section 12 (1) of BOFIA, 2020.
According to Ali, the Board and Management of the bank have not been able to improve the bank’s financial performance, 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 revoking the license the next necessary step,” the statement reads.
The apex bank said the action is to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.
To this effect, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank under 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 statement added.
