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CBN Revokes Heritage Bank's Operating License for Financial Stability

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LAGOS, June 3, 2024 The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc's operating license. The apex bank's decision, detailed in a statement released today, aims to maintain a stable and healthy financial system as mandated by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The statement, signed by Acting Director of Corporate Communications Mrs. Hakama Sidi Ali, highlighted that Heritage Bank breached Section 12 (1) of BOFIA 2020. The CBN cited the bank's persistent poor financial performance and its ongoing struggles despite multiple supervisory measures as key reasons for the license withdrawal.

"The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery," the statement read.

To uphold public confidence and the integrity of the financial system, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator for Heritage Bank, in accordance with Section 12 (2) of BOFIA 2020.

The CBN reassured the public that Nigeria’s financial system remains robust and secure, emphasizing its commitment to protecting depositors and maintaining stability in the banking sector.

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Emmanuel Ukaoha has 4years Experience in Journalism, he is also a Web Developer and an SEO Expert. You Can also Connect with him on Instagram and Linkedln.

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