The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc due to the bank’s ongoing financial deterioration, which threatens financial stability. This immediate revocation was announced in a CBN statement.
The CBN explained that the decision aligns with its mandate to ensure a sound financial system in Nigeria, invoking its authority under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Heritage Bank‘s failure to meet the minimum capital adequacy ratio and other financial requirements under Section 12 (1) of BOFIA 2020 led to this action.
Despite the CBN’s efforts and supervisory measures to address Heritage Bank’s declining performance, the bank’s financial health continued to worsen with no realistic prospects of recovery.
Therefore, revoking the license was deemed necessary to maintain public confidence and the overall soundness of the financial system.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the bank’s liquidator, following Section 12 (2) of BOFIA 2020.
The CBN reassured the public that Nigeria’s financial system remains robust and that this action against Heritage Bank underscores its commitment to financial stability and integrity.
This move signifies the CBN’s strong stance on maintaining stability in the banking sector and protecting depositors’ funds.
The revocation of Heritage Bank‘s license highlights the CBN’s zero-tolerance approach to financial instability and its dedication to safeguarding the financial system’s integrity.
